USD/JPY regains 106.20 on upbeat ADP

• The pair regained some buying interest, now trades around 106.20.
• US 10-year yields in session lows around 2.75%.
• US ADP report showed the private sector added 241K jobs.

The bid tone around the Japanese currency keeps USD/JPY offered on Wednesday, currently around 106.20/25 in the wake of US ADP report.

USD/JPY finds support around 106.00

The greenback managed to attract some attention and lifted the pair from session lows after US ADP report showed the private sector created 241K jobs during March, surpassing estimates and coming a tad lower than February’s 246K (revised from 235K).

Increasing tensions over trade issues between US and China have sparked some demand for the safe haven currency amidst rising risk aversion, motivating spot to revert yesterday’s strong advance.

In addition, the down move appears propped up by lower yields in the key US 10-year note, which are hovering over daily lows near 2.75%.

Further data releases will see US Factory Orders, Durable Goods Orders and the critical ISM Non-manufacturing, all ahead of speeches by St.Louis Fed J.Bullard (2019 voter, centrist) and Cleveland Fed L.Mester (voter, hawkish).

USD/JPY levels to consider

As of writing the pair is retreating 0.35% at 106.25 and a breakdown of 105.91 (10-day sma) would open the door to 105.66 (low Apr.2) and finally 104.56 (2018 low Mar.26). On the flip side, the next hurdle lines up at 107.02 (high Mar.28) seconded by 107.31 (high Mar.13) and then 107.41 (55-day sma).