• Japanese Yen among top performers on Thursday.
• US dollar trims gains during the American session after ISM.
• USDJPY unable to move away from the 148.00 mark.

The USDJPY erased gains during the American session and dropped from 148.44 to 147.60. The slide took place after the greenback lost momentum following the release of the ISM Service Index.

US data below expectations

Ahead of the Non-farm Payrolls report due on Friday, the ISM Service sector report showed numbers below expectations across all indicators. The headline fell from 56.7 to 54.4, against market consensus of 55.5. The employment index fell to 49.1, versus the 51.6 expected.

The greenback lost momentum after the report and following the first hour of trading on Wall Street, which saw equity prices trim losses. US yields pulled back and favored the retreat in USDJPY.

The range prevails  

The slide from 148.45 extended to 147.59 where the pair found support and redounded toward 148.00. As of writing, it is hovering around 147.85, near the level it closed on Wednesday.

The USDJPY continues to trade sideways between 147.00 and 149.00. A break above 149.00 should point to more gains while a consolidation under 147.00, would expose last week’s low near 145.00.

Technical levels