USD/JPY attacks 123 on China trade data-led risk-off

By FXStreet FXStreet (Mumbai) – The Japanese yen snaps losses and extends gains against its American rival in the mid-Asian session, with USD/JPY breaching key support near 123.10 region.

USD/JPY on its way to hourly 200-SMA

Currently, the USD/JPY pair trades -0.24% lower at fresh session lows of 123.09, extending the slide from 123.30 levels. The major corrected lower and fell further into the red zone after dismal Chinese trade data refuelled concerns over the health of China’s economy. Exports declined more than previous, coming at -3.7% against a -2.9% drop expected. Thus, a renewed bout of risk-aversion hit Asia, boosting the demand for safe-havens such as the yen.

Moreover, the yen remains on the bids as markets continue to cheer stronger than expected Japan’s GDP data. The Japanese economy recorded an expansion of 1.0% y/y in Q3, beating the first estimate of a 0.8% contraction. While sharp declines in the Asian markets also adds to the negative sentiment around USD/JPY. Nikkei drops over 1%, Australia’s S&P/ASX declines -0.76% while China A50 index plunges -1.50%.

Looking ahead, the major will continue to get influenced by the risk-on/off sentiment prevailing in markets amid a light macro calendar for today. Besides, only JOLTS …read more

Source:: FX Street