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The big US number for the USD/JPY later today

As noted here earlier, the USD/JPY has already backed away from a new 2024 high this morning. As also mentioned this interim correction could be due to profit-taking and perhaps a paring of dollar longs ahead of what is an important economic release this afternoon. At 3pm GMT we get the release of the US January ISM non-manufacturing index. As I state each month, this index is arguably more important than the manufacturing ISM index, because it accounts for the greater part of US GDP. The markets have already seen clear evidence of rising new orders, prices and a higher manufacturing index itself. If that is replicated in the Services sector later today, then it is going to push the dollar higher again. Of course, the opposite might apply and that could explain the dollar not getting too far ahead of itself today. So, the markets are expecting a corresponding improvement in the Services ISM today. There will be more to add on that later this morning, ahead of the release this afternoon. One thing you can be sure of, is that the USD/JPY is going to move on this data later today. It is just now trading at 148.43 

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