USD/JPY retreats after ADP employment data

FXStreet (Córdoba) - USD/JPY incher lower and dipped back below the 120 mark after ADP data showed the US private sector added fewer jobs than expected in March.

US private sector added 189,000 new jobs in March according to the Automatic Data Processing Inc., missing expectations of a 225,000 gain and following 214,000 printed in February. On Friday, the US Government will release the official nonfarm payroll report, which covers government jobs in addition to the private sector and is expected to show a 244,000 job gain.

USD/JPY dropped a few pips on the back of the data and it was last trading 0.25% down on the day at 119.78. However, the pair continues to trade on both sides of the 120.00 psychological level, unable to set a fresh short-term direction as investors refrain from big positions ahead of the long weekend in Europe and the NFP in the US.

USD/JPY levels to watch

As for technical levels, USD/JPY could find immediate supports at 119.68(200-hour SMA), 119.40(daily low) and 119.10 (Mar 30 low). On the flip side, resistances line up at 120.32/35 (daily high/Mar 31 high), 121.00 (psychological level) and 121.19 (Mar 20 high).