USD/JPY recovery capped near 104.50, revisits 104.00

The USD/JPY pair reversed a brief dip below 104 handle and swung back above the mid-point of the last, before meeting fresh supply and now drifts towards 104 handle.

USD/JPY sees a 80-pips movement so far

The persistent risk sentiment appears to have stabilized as we head into early Europe, offering some support to the USD/JPY bulls. However, the recovery seems to have lost legs as investors flee to safety assets ahead of the Chinese trade data, which are likely to show weaker readings.

Further, markets continue to closely monitor fresh headlines coming from the Japanese government official, supposedly providing some bids to the Japanese yen. At the time of writing, USD/JPY drops back to 104.10, down -0.58% on the day.

The immediate focus remains on the Chinese trade data, while the global sentiment will continue to drive the yen markets going forward.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 104.75 (daily high). A break above the last, the major could test 103.12 (daily S1). While to the downside, the immediate support is seen at 102.75 (20-DMA) and below that at 102.58 (5-DMA).