USD/JPY returns below 147.00 amid generalized Dollar weakness

• The US Dollar gives away previous gains to test two-week lows at the 146.60 area
• US Government's shutdown and downbeat employment data are keeping the US Dollar's rallies limited.
• Increasing bets on BoJ tightening are underpinning JPY's bullish trend.
  

The US Dollar has reversed earlier gains against the Japanese Yen, and retreated below the 147.00 level on the European morning session, turning negative on daily charts and hitting session lows at 146.75 so far.

The pair has come under increasing bearish pressure, with the US Dollar losing ground across the board. The Dollar remains vulnerable amid concerns about the consequences of the US government shutdown and weak labor figures, which have added pressure on the Fed to ease its monetary policy further.

ADP private payroll's data released on Wednesday showed a 32K decline in net employment in September, against market expectations of a 50K increase. Furthermore, August's reading was revised to a 3K drop, from the 54K gain previously estimated.

These figures have raised investors' bets on immediate Fed easing. A quarter-point rate cut in October is seen as a done deal, and chances of another such cut in December have risen to 86%, from 60% last week.

The Yen, on the other hand, remains buoyed by the hawkish summary of opinions released by the BoJ earlier this week. The report indicates that the board considered the possibility of raising interest rates, which has boosted hopes that the bank might tighten its monetary policy after the Liberal Democratic Party appoints a new prime minister at this weekend's elections.