USD/JPY through 103.00, session highs ahead of ADP

The Japanese currency remains on the defensive so far this week, now sending USD/JPY to test daily highs beyond the critical 103.00 handle.

USD/JPY focus on ADP

The pair is advancing for the seventh session in a row today, posting at the same time fresh 3-week highs above the key barrier at 103.00 backed by an increasing selling bias around the Japanese safe haven along with a recent solid performance around the buck.

Later in the NA session, USD will remain in centre stage as the ADP report is expected to come in at 166K during last month, ahead of Trade Balance figures, Factory Orders, Services PMI measured by Markit and the ISM Non-manufacturing.

Nothing noteworthy in the Japanese docket for the rest of the week, while all the attention will remain on USD dynamics as the exclusive driver of the pair’s price action in the very near term.

In addition, and according to the latest CFTC report, speculative JPY net longs climbed to the highest level since April 19 during the week ended on September 27, while Open Interest has ticked higher by around 15K contracts.

USD/JPY levels to consider

As of writing the pair is gaining 0.19% at 103.09 and a breakout of 103.75 (100-day sma) would aim for 104.33 (high Sep.2) and then 107.48 (high Jul.21). On the other hand, the next support is located at 102.06 (55-day sma) followed by 101.68 (20-day sma) and finally 100.07 (low Sep.22).