USD/JPY stuck around 101.00 handle after US data

The USD/JPY pair had a mild bullish reaction and edged back above 101.00 handle to currently trade around 101.10 level after the release of ADP report on private sector employment. 

According to the report, released just a short while ago, US private sector added 172,000 jobs during the month of June. The reading was better-than-expected increase of 158,000 jobs but was slightly below upwardly revised May reading of 173,000 (168,000 initially estimated).

Adding to the upbeat ADP report, US initial weekly jobless claims for week ending July 1 came in at 254K, which again was well below expectations of 270K. 

The pair, however, had a muted reaction to strong employment data as Wednesday's dovish FOMC meeting minutes further dimmed prospects of any further Fed rate-hike in 2016.

Investors now turn their attention to one of the most keenly watch and influential market moving release of US non-farm payrolls (NFP), scheduled on Friday. NFP data is known for infusing substantial volatility across global financial markets and assists investors in determining the near-term direction for the US Dollar.

Technical outlook

Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers Ltd., notes, "Firm bearish setup maintains strong downside pressure with close below 100.66 handle, needed to generate bearish signal and open way for final push towards psychological 100.00 (also Fibo 76.4% of 98.98/103.75) which was approached on yesterday’s spike to 100.18 low.
Loss of 100 handle would open way towards key near-term support at 98.98 (24 June post-referendum low)."

"Mixed near-term technicals may signal extended consolidation while 100.66 holds, with initial resistance at 101.10 (hourly cloud base) and first upper trigger at 101.40 (hourly lower platform / Fibo 38.2% of 103.37/100.18 downleg), break of which would signal further recovery."