The up and down action continues

The better than expected ISM non-manufacturing composite index at 60.3 vs 56.2 (highest since December 2004) has push the dollar sharply higher. The weaker ADP report is a memoryfrom the past.

The USDJPY - already on a moon mission from a post ADP short squeeze - is trading at the highest level since June 8. The next target comes in at 125.04/10. Above that is the high for the year at 125.85 (that is also the highest level since May 2002).

For the EURUSD, the double bottom at the 1.0847 from earlier today would complete an up and down lap for this pair. A move below that level will look toward the low from July 20 at 1.0807. The 1.0818 level was the low from May 27. That too will be a key target on a move lower.

The GBPUSD moved lower falling away from the resistance area above. The pair did find support buyers against the 100 hour moving average, however (blue line in the chart below). Perhaps the traders in the pair are tiring of all the up and down laps it was done over the last few days.