• Yen  retraced a part of early gains after Japanese stocks pares losses, USD/JPY attempts to retake the 101 handle.
   
• But upside in the pair lacks momentum, USD/JPY struggles at the 101 handle. Pair largely ignores upbeat US data. 
   
• US ISM non-manufacturing index came in stronger than it has been since November 2016, and is a big bounce from the 52.9 reading in May.
   
• Focus now on key US employment data due for release today and tomorrow. A decent rebound in payrolls may be enough to prevent a move lower this week.
   
• Intraday bias is lower, RSI, Stochastics on daily charts point south and MACD is well below the zero mark.
   
• Technically, we see scope for break below channel base which could drag the pair to next support at 99.57.
   
• However, how much yen appreciation the BoJ will tolerate is keeping markets wary.
   
• Support is seen at 100.53 (channel base) ahead of 100.18 (lower Bollinger Band) and then 100 levels.
   
• Resistance on the upside seen at 101, 101.76 (July 6th highs) and then 102 levels.