USD/JPY off-lows, but stays below 20-DMA

USD/JPY’s recovery attempts appear to face stiff resistance at 20-DMA (101.75), despite slightly upbeat Chinese trade report, as the US dollar keeps losses against most of its major competitors.

USD/JPY awaits fresh impetus

The JPY bulls remain in control amid persisting risk-aversion, as markets almost shrug-off better Chinese import and exports data. While the Japanese currency also remains in demand on the back of upbeat Japan’s GDP figures, which peeked in to expansion in the reported month.

The recovery in the USD/JPY pair also remains capped on the back of ongoing corrective slide in the US dollar across the board, after staging a brief recovery a day before.

At the time of writing, USD/JPY recovers losses to trade around 101.70, still down -0.07% on the day, while the Nikkei 225 drops -0.45% to 16,940 levels.

Focus shifts towards the US employment data due later today, while the Chinese CPI report will hog the limelight tomorrow.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.91/102 (daily high/ round figure). A break above the last, the major could test 102.56 (5-DMA). While to the downside, the immediate support is seen at 101.18 (2-week lows) and below that at 101 (round figure).