USD/JPY recovery underway on 103 handle ahead of more key China data

USD/JPY is making a comeback after a strong sell-off from 104.63 down to 103.33 while the greenback picks up the pace again since being knocked off the top spot in a mixed environment on Wall Street. 

Wall Street drops to lowest levels in four weeks on China trade

Investors were looking for safe havens and U.S. stocks sold off supporting the case for bullish yen. The Chinese trade balance last night shocked markets with exports down 10% raising concerns amongst investors as to the health of not just the Chinese economy, but global tensions in general, both political and economic. Meanwhile, it is back to China we go today with the focus on Chinese inflation data following. We then look to the U.S. shift for U.S. retail data and Fed Chair Yellen will be watched closely.

USD/JPY levels

The September high at 104.32 is first target ahead of yesterday's at 104.63 guarding May lows at 105.55. However, the outlook from analysts at Commerzbank is more bullish, "Longer term we suspect that the market is basing and target the 107.49 July high and the 200 day ma at 108.07 at this stage."