USD/JPY refreshes session tops on ADP report, 113.00 mark back on sight

   •  USD gains some respite from upbeat ADP report.
   •  Surging US bond yields supportive of the up-move.

The USD/JPY pair traded with a positive bias for the second consecutive session and refreshed weekly tops during the early NA session.

Currently trading around the 112.85 region, the pair continued gaining some positive traction and got an additional boost from today's stellar ADP report, showing a rise of 250K jobs in private sector employment from November to December.

Against the backdrop of yesterday's perceived hawkish FOMC meeting minutes and surging US Treasury bond yields, the upbeat reading extended some support to the US Dollar and helped the pair to build on its recovery move from the 112.00 neighborhood, touched on Tuesday.

Meanwhile, a slight disappointment from initial weekly jobless claims, coming in at 250K for the week ended December 29, seems to have been largely negated by the prevailing risk-on environment, which tends to dent the Japanese Yen's safe-haven appeal.

It would now be interesting to see if the pair is able to build on the recovery move or runs through some fresh offers at higher levels as traders start repositioning themselves ahead of Friday's keenly watched NFP report.

Technical levels to watch

The ongoing bullish momentum is likely to confront resistance near the 113.00 handle, above which the pair could dart back towards 113.55-60 supply zone. On the flip side, mid-112.00s now seems to protect the immediate downside, which if broken could accelerate the slide back towards the 112.00 handle.