ISM's Holcomb calls it "nice, well balanced report"
The ISM was a bit softer with employment falling below 50 and New Orders down a bit (from 57 to 56.9), but employment in manufacturing is not what it used to be and New orders remains comfortably above the 50 line which splits expansion from contraction. It is nice.
So the USDJPY fell on the headline and has rebounded back higher. The low extended to 102.17. The high rebounded to 102.44. It is currently trading at 102.34.
The USDJPY seems to be more focused on the Abe's proposal later this week - and perhaps buying time until that announcement. The activity today has been up and down. The pair remains below a topside downward trend line and a lower rising trend line. The high correction stalled below the 38.2% of the trend move lower on Friday. That suggests sellers above. Having said that, however, the low after ISM stalled at that lower trend line on the chart above.. The range today is 71 pips. The NY range is only 29 pips.
The non trending after the more trending move on Friday is suggesting a market that wants something more. The pair is higher on the day but waffling. We need a push. Can it happen?
S&P is little changed. The Nasdaq is up 0.48%. Any suggestions out there?
