FxWirePro: USD/JPY rebounds from lows on upbeat Chinese data, good to go long on dips

• USD/JPY picked up significant strength and saw a nice rebound from lows of 102 levels.
   
• Renewed risk-on wave in the markets following the release of better-than-expected Chinese Caxin manufacturing PMI.
   
• Data released earlier on Monday showed that Caixin China Purchasing Managers’ Index coming in at 50.6, with manufacturing rebounds seen after 16 months of contraction.
   
• Comments from Fed official Dudley keep the sentiment around the greenback buoyed, US ISM manufacturing PMI due later in the NY session will also be in focus.
   
• Fed’s Dudley was on the wires earlier today said, "If we grew much faster than 2.0% we would have to tighten monetary policy."
   
• Dudley says 'Definitely' see interest rate hike before US election if the economy grows & labour market improves quickly.
   
• Technically, USD/JPY finds stiff resistance by 1H 20-SMA currently at 102.51, decisive break above could see upside upto 103.75.
   
• On the downside, the pair finds strong trendline support at 102 levels, weakness only on break below.
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Recommendation: Good to go long on dips around 102.30/40, SL: 101.90, TP: 102.75/ 103/ 103.35