The dollar fell back below 110.00 handle against Japanese yen after US ISM Non-Manufacturing PMI dropped to 53.9 in July, well below forecast at 57.0 and June’s release at 57.4.
On the other side, US Factory orders jumped to 3.0% in June, posting the biggest gain in eight months, but positive impact on upbeat results was diminished by expectations for modest pace of growth in manufacturing sector, due to fading support from energy sector.
Fresh acceleration lower and retest of strong supports at 110.00 zone signaled an end of corrective phase which stalled under strong 111.00 resistance.
Close below 110.14 (Fibo 76.4% of 108.80/114.49 rally remains as minimum requirement for generating firmer bearish signal, with sustained break below 110.00/109.91 pivots to confirm bearish continuation.
Conversely, repeated failure at 110.00 support may keep the pair within near-term 110.00/111.00 range.
Res: 110.51; 110.82; 111.00; 111.34
Sup: 109.91; 109.62; 109.26; 109.00
