FXStreet (Mumbai) – The USD/JPY pair trims gains and reverts towards 118 handle, as risk-sentiment seems to have cooled-off a bit on the back of wobbling China stocks.
USD/JPY eases-off highs
Currently, the USD/JPY pair trades 0.47% higher at 118.22, easing-off three-day highs printed at 118.35. The USD/JPY pair keeps the bid tone intact, although retraces gains as the USD bulls halted its run up to 10-DMA at 118.35 as the recovery in the Chinese equities appears faltering, while markets continue to assess the latest trade data from China.
However, the major continues to remain underpinned on the back of a sharp rally seen the Japanese benchmark, the Nikkei, which jumps +2.81% towards close. Looking ahead, the sentiment on the European stocks is likely to dominate the USD/JPY moves amid a data-dry macro calendar for the major today.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 118.57/77 (1h 200-SMA/ Jan 8 High). A break above the last, the major could test 119.00/10 (round number/ daily R3). While to the downside, the immediate support is located at 117.67 (5-DMA) below which 117.20/117 (Jan 12 low) would be tested.
(Market News Provided by FXstreet)