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USD/JPY running into sellers around 156?

The price action in the USD/JPY so far this morning has delivered a move close to the 156 handle just now and that is quite some way above the lows seen yesterday, at 154.55. Given the relative position of US yields and the overall risk dynamic, this recovery is probably a surprise to quite a few traders. That said, the dollar appears to be meeting resistance at, or just ahead of that 156 handle for the time being. So, later today the dollar will be impacted by the Service sector ISM report and for sure the USD/JPY will be front and centre in any reaction to the data. The markets are not expecting a set of weak data here. The forecast is for the services index to rebound to around 50.8 in May, from an April reading of 49.4. Once again the prices paid component of this index will be important too. That was last at 59.2. There will be more to add on this later today, but we should also remember that this service sector data is more important than the manufacturing number we had yesterday, as it accounts for the greater share of US GDP. The USD/JPY is currently trading at 155.97
 

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