USD/JPY off day’s peak, but holds 101.00 level ahead of ADP report

The USD/JPY pair has held on to its tepid recovery gains but having posted a daily high near 101.40 level, has retraced few pips to currently trade around 101.15-10 band ahead of US releases.

Today's economic data slated for release from the US economic calendar include - ADP report on private sector employment and ISM non-manufacturing PMI. ADP report is seen as a precursor to Friday's official monthly jobs report, popularly known as NFP, and hence, a strong print would provide a much needed respite for the US Dollar. 

The major was offered heavily on Tuesday as markets were disappointed by the Japanese fiscal measures announcement. Moreover, US economic data, namely - Core PCE Price Index and personal spending, failed to impress and added on to the selling pressure, with the pair tumbling below 101.00 handle to a 3-week low.

The pair, however, has managed to register a tepid rebound on Wednesday as focus now shifts to Friday's NFP data, which would further drive the pair in the near-term.

Technical levels to watch

On the immediate upside, momentum above session high resistance near 101.40 seems to lift the pair immediately towards 101.95 and the recovery trend could further get extended towards 102.45 horizontal resistance.

Conversely, weakness back below 101.00 handle, and a subsequent drop below yesterday's swing low support near 100.70-65 region, has the potential to continue dragging the pair towards its next major support marked by 100.00 psychological mark.