• US ISM manufacturing activity index fell to 49.9 in August from 52.6 in July, in stark contrast to the recent fed speak ahead of the FOMC this month.
   
• USD/JPY witnessed over 80-pip slump after the poor ISM show from highs near the 104 handle.
   
• The pair however managed to close above 55-EMA at 103.23, which is strong support on the downside.
   
• The Japanese Yen coming under pressure in the Asian session as the JGB sell-off and the resulting rise in the bond yield weighed.
   
• USD/JPY is attempting a minor recovery from early Asian session lows of 103.13, currently trading around 103.36.
   
• All eyes now on the crucial non-farm payrolls data ahead of the FOMC meeting later in the month.
   
• Major trend is definitely weaker.  But a positive surprise from NFP today could take the pair higher.
   
• Major resistance levels - 104.45 (61.8% Fib & trendline), 105, 105.80 (110-EMA).
   
• Major support levels - 103, 102.97 (5-DMA), 102.58 (38.2% Fib).
   
• NFP will be the major driver for further price action. Go long on upbeat data, target 104.45/ 105/ 105.80.
   
• On the flipside, short USD/JPY on NFP data miss, target 102.58/ 102/ 101.41