USD/JPY jumps to fresh session high ahead of US ISM

Having posted a session low near 103.00 handle, the USD/JPY pair recovered its lost ground to resume with its near-term recovery trend and is now building on to its gains beyond 103.50 level.

Currently trading at 103.65-70 band, the highest level since July 29, the pair maintained its bid tone amid rising expectations of further monetary easing by BoJ and increasing prospects of an eventual Fed rate-hike action. 

The Japanese Yen has even failed to benefit from cautious sentiment surrounding European equities, which is seen supportive for traditional safe-haven currencies, like Yen, as markets seem to build on to expectations of yet another strong official jobs report from the US, which remains an important factor in the Fed next monetary policy move. 

On Thursday, traders will focus on the release of initial jobless claims and ISM manufacturing PMI data in order to grab some short-term trading opportunities.

Technical levels to watch

Immediate upside resistance is pegged near 103.90-95 area above which the pair seems to continue with its near-term bullish traction further towards 104.50 resistance area. On the flip side, 103.00 handle now seems to have emerged as immediate support, which if broken seems to drag the pair back towards 50-day SMA resistance break-point near 102.65-60 region.