FXStreet (Mumbai) - The Japanese yen picks-up significant strength versus its American counterpart for the second straight session on Tuesday, knocking-off USD/JPY to fresh session lows.
USD/JPY capped hourly 200-SMA
Currently, the USD/JPY pair trades -0.16% lower at 119.84, testing Oct 9 low posted at 119.82 levels. The USD/JPY pair failed to resist the hourly 200-SMA and keeps pushing lower thereon, with the JPY bulls in total control as risk-aversion in Asia intensifies post mixed China trade data release.
China's exports slipped 1.1% in September from a year earlier, while imports plunged 17.7%, producing a trade surplus of 376.2 billion yuan. Although the exports came in much better than forecasts, weaker imports data reinforced concerns over Chinese domestic demand.
On the equities space, the Nikkei drops nearly 1%, while the Australian stocks dive deep in the red -1%. The Chinese benchmark, Shanghai Composite (SSEC) trades -0.54% lower.
Meanwhile, markets will continue to assess the Chinese trade numbers and will track the broader markets sentiment ahead of Chinese inflation and the US retail sales data due for release tomorrow.
USD/JPY Technical levels to consider
To the upside, the next resistance is located at 120.06 (hourly 200-SMA) beyond which 120.26 (daily R1) could be tested. Above the last, the pair could climb further towards 120.48/51 (daily R2 & 50-DMA). To the downside immediate support might be located at 119.64 (daily S2), below which 119.22-21 (Sept 29 & 24 Lows) could be exposed. A breach of the last, the pair could drop to 118.83 (Sept 8 Low) levels.
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