FXStreet (Edinburgh) - The greenback is now losing the grip against the Japanese yen on Wednesday, dragging the USD/JPY to test intraday lows in the mid-101.00s.

USD/JPY looking to ADP report

Absent a relevant docket from the Japanese economy, markets will turn their attention to the release of the ADP Employment report in the US, with consensus expecting the private sector to have added 205K jobs during June. “With carry dominating in the near term, the pair may remain slightly supported while also continuing to take cues from the broad dollar’s pulse. Expect the 200-day MA (101.75) to put a lid on the pair for now while close proximity support is expected on approach of 101.20”, observed Emmanuel Ng, FX Strategist at OCBC Bank.

USD/JPY levels to watch

At the moment the pair is losing 0.01% at 101.50 with the immediate support at 101.29 (low Jul.1) followed by 101.24 (low Jun.30) and finally 101.00 (psychological level). On the flip side, a breakout of 101.70 (Ichimoku Cloud Base) would target 101.72 (Tenkan Sen) en route to 101.75 (200-d MA).

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