USD/JPY retraces intraday gains

The greenback was trading firmer across the board and took USD/JPY to a 2-week high of 118.60, although it surrendered gains afterwards despite better-than-expected ISM manufacturing PMI data.

USD/JPY turned lower and fell all the way back toward 117.34, retracing intraday gains. At time of writing, the pair is trading at 117.63, just a few pips above its opening price.

On the data front, the US ISM manufacturing PMI rose to 54.7 in December from 53.2 in November, surpassing expectations of 53.5 and marking the highest level for the index since December 2014.

USD/JPY levels to watch

In terms of technical levels, next resistances line up at 118.65 (Dec 15 high), 119.00 (psychological level) and 120.00/03 (psychological level/Feb 3 2016 high). On the flip side, supports are seen at  117.27 (Jan 3 low), 117.00 (psychological level) and 116.03 (Dec 30 low).