The USD/JPY pair is seen reversing a part of intraday gain, after a fresh risk-aversion took the markets off their feet and rescued the JPY bulls somewhat, in wake of softer Chinese trade balance data.
The spot was last seen exchanging hands at 115, easing-off session tops reached at 115.18 earlier on the day, although advancing +0.24% on the day. Further, the bulls ran into 50-DMA resistance as the rebound in the Japanese stocks lost legs, while upside surprise in the inflation expectations, as reported in the BOJ’s quarterly survey underpinned the sentiment around the yen.
Markets appear to have looked past a non-event Fed Chair Yellen’s speech, as all eyes now remain on a fresh batch of US macro news, with key focus on the US PPI, due later in the NA session.
USD/JPY Technical levels to watch
The major finds immediate resistance at 115.18 (50-DMA). A break above the last, the major could test 115.50 (psychological levels) and 115.64 (1h 100-SMA) beyond the last. While to the downside, the immediate support is seen at 114.66 (daily pivot) next at 114.23 (Dec 11 low) and below that at 114 (round number).