USD/JPY keeps the red near weekly lows after ADP report

The USD/JPY pair maintained is offered tone through early NA session but has managed to recover few pips from weekly lows following a report on the US private sector employment. 

The US Dollar selling pressure abated after the latest ADP report showed private sector employers added 135K new jobs during the month of September. The headline number bettered expectations pointing to a reading of 125K expected, but worse than previous month's 228K jobs (revised lower from 237K), and hence, did little to dramatically improve the weaker tone around the greenback. 

Adding to this, the ongoing slide in the US Treasury bond yields, led by speculations over who might be the next Fed Chair after the current Chair Janet Yellen's term expires early next year, might also keep the USD bulls on the back-foot and collaborated towards keeping a lid on any sharp recovery for the major.

   •  USD: Softer tone guided by Fed chair uncertainty – BBH

Today's US economic docket also features the release of ISM non-manufacturing PMI, which would be followed by the Fed Chair Janet Yellen's speech later during the NY trading session.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: " Repeated failure to close above the 113.00 handle has opened doors for a pullback to the weekly 200-MA support seen at 111.80 levels."

"An end of the day close below 112.21 [Sep 29 low] would signal some potential for a deeper pullback to 111.44 [200-DMA]. On the higher side, a daily close above 113.25 [Sep 27 high] would revive the bullish move and shall open up upside towards the 115.00 handle" he added.