USD/JPY sees little action after China services PMI release

Dollar-Yen pair saw little action after the data released in China showed pace of expansion in the service sector slowed slightly in July.

Supported by 76.4% Fibo

Spot rebounded from 100.84, which is 76.4% Fibo retracement of the move from 98.787 (post Brexit low) to 107.49 (post Brexit high). The move appears largely chart driven given the sharp sell-off on Friday and Tuesday would have led to a loss of momentum.

China data missed estimates, but failed to have any major impact on the broader market sentiment, thus leaving the pair largely unchanged around pre-data level. Ahead in the day, broader market sentiment and US ISM non-manufacturing report could influence the pair.

USD/JPY Technical Levels

A breakdown of psychological level of 101.00 could yield a move lower to 100.71 (50% of 2011 low – 2015 high), under which the spot could target 100.00 levels. On the higher side, violation at 101.45 (July 5 low) would open doors for 102.11 (61.8% of 98.787-107.49). Further gains could run into resistance at 103.55 (June 16 low).