USD/JPY waiting for what the ISM data has to deliver

The USD/JPY is currently edging a little lower. Much earlier today the dollar reached a high at 157.57 after closing in the US last night at 157.50. So, it did not really improve much on that US close. The low seen today has been set at 157.04 which was reached just as the European markets got underway. Since then it has traded just above 157.40, but for most of the last hour it has been drifting lower again. The USD/JPY will be front and centre of any dollar reaction to the ISM manufacturing report later this afternoon. That is due out 3pm GMT and as noted earlier, it is expected to be slightly lower last month (48.2 versus 48.4). There are other important components to this data, namely the prices paid (last at 50.3 and expected to be around 51.8) new orders (last at 50.4) plus employment (last at 48.1). Any of those components could supersede the headline number if they really surprise. The USD/JPY is edging back just now as US yields slip a little. The immediate levels to note this afternoon are around 156 and on the topside there is a potential double top on the daily charts, at 158.08 and 158.07. That will only be confirmed if the dollar falls below 156 from here. So there you have it- 156 to 158 approximately covers it for now. The USD/JPY is right now at 157.11