FxWirePro: USD/JPY dips below lower range, bearish bias increases

• USD/JPY declined sharply on Thursday after weaker-than-expected U.S. services sector data worried investors ahead of jobs data and stoked doubts that the Federal Reserve would raise interest rates again in 2017.
   
• A report from the Institute for Supply Management (ISM) showed its non-manufacturing index fell to 53.9 last month from 57.4 in June. While a reading above 50 in the ISM index indicates expansion in the sector, the figure came in below expectations of economists polled by Reuters for a reading of 57.0.
   
• The dollar's losses against the yen reached 0.7 percent on the day after the data, with the greenback touching a session low of 109.93 yen.
   
• The pair is set to reach 109.70 and later towards 109.50 in the short term as the US dollar is set to weaken further against its Japanese counterpart in the short term. Therefore it’s good to sell this pair on rallies.
   
• To the upside, the strong resistance can be seen at 110.77, a break above this level would take the pair towards next resistance level at 111.00.
   
• To the downside immediate support can be seen at 109.91, a break below this level will open the gates towards next level at 109.71.
  
  Resistance Levels
  
  R1: 110.35 (50% Retracement level)
  
  R2: 110.77 (61.8% Retracement level)
  
  R3: 111.00 (Psychological level)
  
  Support Levels
  
  S1: 109.91 (38.2 % Retracement level)
  
  S2: 109.71 (June 13th lows)
  
  S3: 109.39 (23.6 % Retracement level)

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