USD/JPY breaks down the 100.00 key level

FXstreet.com (San Francisco) - Following the worst than expected ISM manufacturing index, the USD/JPY has fallen further to break down the 100.00 key level for first time since May 9th. Currently the USD/JPY is trading at 99.80.

The Institute for Supply Management data published on Monday showed that the US ISM Manufacturing PMI fell below the contraction level to 49 in May, from 50.7 in April. Market consensus pointed to a slower expansion at 50.5.

After falling around 80 pips in the last two hours from 100.40, the USD/JPY has breaking down the 100.00 and reached the lowest level since may 9th at 99.60. Short term perspective remains slightly bearish according to the FXstreet.com trend index in the 15-minute chart. Indicators such as MACD, CCI and Momentum are bearish while the Stochastic is bullish.

Below the 99.60, next supports are at 99.50 and 99.20. On the upside, 100.00 is the new key resistance, next levels are 100.50 and 100.75.