USD/JPY extends steady climb, inching closer to mid-106.00s

   •  JPY weighed down by today’s softer Japanese data.
   •  Subdued USD demand fails to assist build on the uptick.
   •  US ISM PMI eyed for some short-term trading impetus.

The USD/JPY pair quickly reversed an early dip to the 106.15 region and is currently placed just below the top end of its Asian session trading range. 

The pair once again managed to catch some fresh bids ahead of the 106.00 handle and got an additional boost from today's weaker-than-expected release of Japanese manufacturing & non-manufacturing indicators. 

Meanwhile, a modest uptick in the US Treasury bond yields failed to revive the US Dollar demand and assist the pair to build on the uptick. Even a mixed trading sentiment around Asian markets also did little to influence the Japanese Yen's safe-haven demand and eventually led to a range-bound/subdued price action at the start of a new week/quarter.

Later during the NA session, the release of US ISM manufacturing PMI would now be looked upon for some short-term trading impetus. Investors this week will also confront a slew of important US macroeconomic releases, which should help determine the pair's next leg of directional move.

Technical levels to watch

Immediate resistance is pegged near the 106.55-60 region, above which the pair is likely to aim towards reclaiming the 107.00 handle. On the flip side, 106.15 level now seems to have emerged as an immediate support, which if broken might turn the pair vulnerable to head back towards retesting the 105.55-45 horizontal support.