USD/JPY finds support at 102.50, awaits US ISM PMI data

The USD/JPY pair inched lower before finding some support around 102.45 region and rebound a bit to currently trade around 102.65 level ahead of the release of US ISM manufacturing data. 

Although the pair has recovered over 50% of its Brexit led decline, it continues to struggle in extending the recovery move as traders remained cautious over the prevalent uncertain environment. 

As we head into an extended weekend in the US, traders would continue to face difficulty in determining the near-direction for the pair amid thin liquidity condition. 

The scheduled release of the US ISM Manufacturing, later during NY trading session, might provide some momentum play, which is likely to be short-lived and overshadowed by Brexit related news / developments.

Technical outlook

Slobodan Drvenica, Information & Analysis Manager Windsor Brokers Ltd., notes, "Near-term studies turned in negative mode, signaling possible further downside extension, as the pullback approaches good support at 102.33 (Fibo 23.6% of 98.98/103.37 recovery). Further bearish extension needs to clear next support at 101.96 (Fibo 38.2% retracement), to generate stronger signal of an end of recovery phase from 98.98 low."

"Otherwise, while 101.96 support holds, current pullback could be seen as consolidation, ahead of fresh upside attempts."