USD/JPY refreshes session tops near 110.20 on strong ADP report

The USD/JPY held on its daily gains and refreshed session tops near 110.20 level in wake of stellar ADP report on the US private sector employment. 

The US Dollar overnight strong recovery move from over 2-1/2 year lows got an additional boost after the latest ADP report showed an impressive 237K addition of new private sector jobs in August. The reading surpassed even the most optimistic estimates and might have also lifted expectations from Friday's official NFP report. 

Meanwhile, the prevalent risk on environment, on easing geopolitical tension and which tends to weigh on the Japanese Yen's safe-haven appeal remains supportive of the pair's up-move to fresh two-week highs. 

Next on tap would be the second estimate of US Q2 GDP growth, which if surprises positively should pave way for continuation of the pair's recovery from over 4-month lows touched in the previous session.

Technical levels to watch

A follow through buying interest beyond 110.25 immediate resistance is likely to accelerate the up-move towards 110.65 intermediate resistance before the pair eventually darts towards conquering the 111.00 handle.

On the flip side, weakness back below 110.75 level now seems to find support near 110.50-45 area, which if broken would turn the pair vulnerable to head back towards the key 110.00 psychological mark.