FxWirePro: USD/JPY refreshes 7-month highs, dollar gains strength ahead of U.S. ISM data

USD/JPY chart - Trading View 

USD/JPY refreshes 7-month highs, trades 0.17% higher at 106.69 at around 10:20 GMT.

U.S. dollar trades higher for the 5th straight session, strengthens ahead of ISM Manufacturing data.

Increasing likeliness of further fiscal stimulus and the strong recovery predicted in the global economy post-pandemic keeps sentiment buoyed.

Focus on the ISM Manufacturing PMI along with Markit’s final PMIs for the month of February and the speech by FOMC’s permanent voter L.Brainard for further impetus.

Technical indicators point to further upside in the pair. Momentum bullish and volatility is rising. 

The pair is extending gains above 200-DMA and has broken above 38.2% Fib. Bulls eye 50% Fib retracement at 107.15.