USD/JPY plunges to 5-day low on disappointing US ISM data

A fresh bout of US Dollar selling seems to have emerged during early US trading session, with the USD/JPY pair tumbling below 103.00 handle.

Currently hovering around 50-day SMA near 102.35-40 band, the pair came under intense selling pressure after a gauge of activity in the US services sector unexpectedly dropped to the lowest level since January 2010. The US ISM non-manufacturing PMI for August came-in at 51.4, worse than 55.7 expected and July's 55.5.

Today's disappointing release added on to Friday's dismal monthly jobs report and further dampened prospects of an eventual Fed rate-hike action and was seen hurting the greenback across the board, with the major broke through 50-day SMA support near 102.65-60 region and plunged to a 5-day low level near 102.25 region. 

Technical levels to watch

From current levels, 102.00 round figure mark should attract some buying interest. Failure to hold this immediate support is likely to turn the pair vulnerable to extend its downslide further towards 101.25 support area. On the flip side, any recovery attempt might now confront immediate resistance at 50-day SMA support break-point near 102.60-65 region, above which the pair could make a fresh attempt to reclaim 103.00 handle.