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FxWirePro: USD/JPY sinks further, US dollar hammered on dismal ADP employment numbers

USD/JPY chart - Trading View 

USD/JPY refreshes 10-week lows after dismal ADP employment numbers. The pair was trading 0.21% lower at 108.78 at around 12:55 GMT.

US private sector employment increased by 330,000 in July, data published by the Automatic Data Processing (ADP) Research Institute showed on Wednesday.

The reading missed the market expectation of 695,000 by a wide margin and followed a revised 680,000 in June.

ADP numbers do not bode well for the US Non-farm-payrolls report scheduled for Friday. Poor NFP data will reinforce Dovish remarks last week by Fed's Powell. 

Later in the session, the IHS Markit's and the ISM's Services PMI reports from the US will be looked upon for fresh impetus.

Technical bias for the pair is strongly bearish. Price action is extending weakness below daily cloud and has broken below 110-EMA. 

The major is slipping below 200-week MA as we write, which is crucial support at 108.84. Decisive close below will open downside for the pair.

Major supports on the downside align at 38.2% Fib at 108.19, 200-DMA at 107.19 and 110-week EMA at 107.96.
 

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