Forex: USD/JPY approaches to 90.50 after disappointing ISM data

By IBTimes Staff Reporter | November 04 2009 10:37 AM

FXstreet.com (Barcelona) - The Dollar has continued with its rejection from 91.05 to trade close to 90.50 level after the bad ISM non-manufacturing data in October. In the minutes coming from data, USD/JPY fell 50 pips form 90.85 to 90.55.

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Currently the pair is trading around 90.60/70, 0.40% above today's opening price action at 90.30.

ISM non-manufacturing index has decreased against expectations to 50.6 pts in October from 50.9 pts in September. Market expectations were an increase to 51.5 pts in October.

Valeria Bednarik, FXstreet.com collaborator, comments: Consolidating barely under 91.00, pair holds a bullish perspective after breaking the 90.65 strong area. Still, indicators seem a bit exhausted to the upside while 91.00 won't be an easy level to beat. Expect downside corrections to remain above mentioned area in order to sustain further rises later in the day.

Bednarik provides us with her levels: Support levels: 90.65 90.20 89.80. Resistance levels: 91.10 91.40 91.80.

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