USD/JPY: Bulls rescued by upbeat China trade, reverts to 10-DMA

The USD/JPY pair stalled its downslide following the release of better-than expected Chinese imports and exports data, now attempting a tepid bounce back towards the mid-point of 113 handle.

USD/JPY back below 5-DMA at 113.74

The persisting risk sentiment got a boost from auspicious Chinese trade figures, calming fears over an economic slowdown in China. Hence, the yen was knocked-off amid re-emergence of risk-on trades, lifting USD/JPY from session troughs of 113.15.

The Chinese exports came at +5.9% y/y vs -0.1% expected and -3.2% last, while imports jumped +13.0% y/y vs +3.6% expected and +3.2% last.

Moreover, renewed buying interest seen around the Japanese stocks, also aided the recovery in the major. The major is last seen changing hands at 113.38, looking to regain 10-DMA at 113.51, still down -0.34% the day.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.74 (5-DMA). A break above the last, the major could test 114 (zero figure) and 114.83 (10-month high) beyond the last. While to the downside, the immediate support is seen at 113.15 (daily low) next at 112.84 (Dec 5 low) and below that at 112.49 (20-DMA).