USD/JPY off lows, but capped by 10-DMA

A better–than expected US NFP report continue to underpin the USD bulls, although the USD/JPY pair trimmed gains and now trades below 10-DMA amid increased nervousness ahead of the Chinese trade data.

USD/JPY eyes China trade

The dollar-yen pair extended upbeat US payrolls data-led bullish run near 102.27 levels, before meeting fresh supply near the last as the bulls faced exhaustion after the recent upsurge. The US economy added 255,000 jobs last month, according to data published by the Bureau of Labor Statistics on Friday, beating the consensus forecast of 180,000.

Moreover, poor Japanese current account data also weighed further on the yen and kept the sentiment around the major buoyed. However, over the last hour, the USD/JPY pair hovers near 102 handle, as markets seek safe-havens such as the yen ahead of the much-awaited China’s trade data, which may spur significant volatility into the markets.

At the time of writing, the USD/JPY pair trades +0.29% higher at 102.07, having recovered from 101.91 lows, while the Nikkei 225 index jumps +2% to 16,580 levels. Next of note for the major remains the Chinese trade release ahead of the US LMCI data due later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.27 (daily top). A break above the last, the major could test 102.47 (daily R2). While to the downside, the immediate support is seen at 101.68 (5-DMA) and below that at 101.50 (psychological levels).