USD/JPY treading water near 101.40, US ISM on sight

USD/JPY is extending its snail-paced upside at the beginning of the week, currently hovering over the 101.40/45 band ahead of US data.

USD/JPY attention to US ISM

The pair is advancing for the fifth consecutive session today, extending its rebound from last week’s troughs in the boundaries of the psychological handle at 100.00 the figure.

Data wise, the key Japanese Tankan index has come in on a firmer note for the third quarter, although markets have largely bypassed the results. Ahead in the session, US Markit’s manufacturing PMI is due later preceding the more significant ISM Manufacturing for the month of September. Consensus expects the index to have improved to 50.3, returning to the expansionary territory after August’s drop to 49.4.

On another direction, JPY net longs have climbed to the highest level since April 19, while Open Interest increased by around 15K during the week ended on September 27, according to the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is gaining 0.04% at 101.38 and a breakout of 101.86 (high Sep.29) would aim for 102.09 (55-day sma) and then 103.36 (high Sep.14). On the other hand, the next support is located at 100.07 (low Sep.22) ahead of 99.53 (low Aug.16) and then 99.08 (low Jun.24).