USD/JPY retraces below 103.00 handle after ADP report

The USD/JPY pair trimmed some of its gains to the highest level since mid-September and has now retraced back below 103.00 handle following the release of ADP report on US private sector employment. 

According to the ADP report released just a while ago, US private sector added 154K new jobs during the month of September. The headline number fell short of consensus pointing to 166K new jobs and 175K jobs added during the month of August. 

The report failed to attract fresh buying interest as investors might now trim their expectations from Friday's official jobs report, which is expected to show US economy added 172K new jobs in September. 

Next in focus would be US ISM non-manufacturing PMI and factory orders later during NY trading session.

Technical levels to watch

A follow through buying interest should boost the pair immediately towards 103.30-35 intermediate resistance before the pair aims towards testing 100-day SMA hurdle near 103.75 region.

Conversely, weakness below session low support near 102.70-65 zone could drag the pair towards 102.50 ahead of 102.25 support. Weakness below 102.25 might now find strong buying interest around 102.00 handle.