Today we got the Automatic Data Processing Inc's (ADP's) report on the labor market in September. It was a disappointment from the already lowered expectation vs. the August reading. ADP Employment Change:September: 154KForecast: 166KAugust: 175kADP Employment Change for the past 12 months:(source: tradingeconomics.com)Basically, we saw the 2nd worst monthly reading for ADP employment change in the past 12 months. The main driver of employment was from Professional/Business Services, while Manufacturing was the only sector that netted a decline in employment. (source: official ADP report)According to Mark Zandi, chief economist of Moody's Analytics, this slowdown in growth reflects a return to full-employment. “The current record of consecutive monthly job gains continued in September. With job openings at all-time highs and layoffs near all-time lows, the job market remains in full-swing. Job growth has moderated in recent months, but only because the economy is finally returning to full-employment.” (official ADP report)While we might have mixed feelings about today's report, the market showed a clear USD-negative reaction, at least for the immediate time after the release.USD/JPY 10/5 15-minute chart:(click to enlarge)Just a reaction:- We should note that USD/JPY is in a short-term uptrend that has the 104 handle in sight before seeing key resistance.- However, we are seeing price retreat from 103.15 after the market saw the underwhelming ADP jobs report. - Now, this reaction so far still leaves the prevailing uptrend intact.- It will take at least a break below 102.70 before there is enough downwards momentum to start a consolidation if not a bearish correction.Bearish correction scenario:- If we do get a bearish correction, we should monitor the 101.50-102 area. - As we can see in the 4H chart, this area is a previous resistance pivot that could be tested as support.- Also, there is a rising trendline that might challenge the bearish attempt in this area. - This is also where the cluster of simple moving averages (SMAs) start. If USD/JPY has indeed turned bullish, it should really bounce off of this SMA cluster.- Finally, note that the RSI is above 70 in the 4H chart. Monitor it especially if it approaches 40 and stalls. If price can hold above 101.50 and the RSI can hold above 40, we should still consider USD/JPY bullish towards 104. USD/JPY 4H Chart 10/5(click to enlarge)