US ISM Preview: what to expect of USD/JPY

The Institute of Supply Management (ISM) will publish its manufacturing index later in the NA session, with prior surveys expecting the indicator to have eased to 52.0 during August from July’s 52.6. The expected drop should be reinforced by previous soft readings from regional Fed gauges.

In the FX space, USD/JPY is advancing for the seventh consecutive session so far, clinching highs above 103.60, levels last seen in late July. The current trading levels coincide with the 50% retracement of the July-August drop, and further upside impetus opens the door to a visit of another retracement at 104.44 ahead of the 100-day sma, today at 105.44.