USD/JPY off highs, keeps 103.00 ahead of ADP

The Japanese currency keeps depreciating vs. its American counterpart on Wednesday, lifting USD/JPY to fresh tops above the 103.00 handle.

USD/JPY attention to ADP report

After reaching fresh 5-week tops near 103.40 during overnight trade, the pair has now lost some upside momentum and has returned to the 103.15/10 band ahead of the US ADP report. Prior surveys expect the US private sector to have added 171K jobs during August, reinforcing the good health of the domestic labour market.

On the Japanese side, speculations on the potential move from the BoJ at the September meeting continues to rise although bets on the probable outcome still remain pretty divided.

USD/JPY levels to consider

As of writing the pair is gaining 0.17% at 103.16 facing the immediate hurdle at 104.47 (38.2% Fibo of the June-July up move) followed by 105.49 (100-day sma) and finally 107.48 (high Jul.21). On the other hand, a breakdown of 101.26 (20-day sma) would aim for 99.53 (low Aug.16) and then 99.08 (low Jun.24).