USD/JPY undecided: jumps to 110.40 and retreats back to 110.10

USD/JPY peaked at 110.47 after the upbeat ISM manufacturing report but failed to hold and now appears to be moving toward 110.00. The yen recovered momentum as equity prices in Wall Street failed to hit new highs and as a US bond yields moved away from highs. 

The pair is moving without a clear direction. The spike to the downside, that followed the NFP report was quickly reversed and now, the move to the upside, after ISM also faded. 

US: Economic activity in the manufacturing sector expanded in August - ISM

Currently, the pair trades at 110.10/15, marginally higher for the day but 80 pips above the level it had a week ago, and more import, far from the multi-month lows it reached on Tuesday at 108.22.

Technical outlook 

“The 4 hours chart for the pair shows that the price remained below the 200 SMA ever since the day started, but also that buyers defended the downside around the 100 DMA”, said Valeria Bednarik, Chief Analysts at FXStreet.

According to her technical indicators in the 4 hours chart gained downward strength around their mid-lines, with not enough to confirm a downward extension for the upcoming hours, unless 109.55 gives up.