USD/JPY: bulls stay in control, but remains better offered below cloud resistance

USD/JPY has a small test below the 102 handle in the open after reaching a high of 102.20 in the early open.

USD/JPY made a fresh low of 101.90, but has since drifted back to the 102 handle while markets lack impetus in a relatively quiet start to the week after a surprise in the US non farm payrolls last week.  

Market wrap: nonfarm payrolls surprised us all - Westpac

Just before the open, we had the Japan BoP Trade Balance (Jun) that arrived as JPY 763.5 Bln vs exp JPY 773.5Bln and prev JPY 39.9 Bln. Now we have China’s trade balance for July that has a median estimate being $47.30bn. Both exports and imports could show smaller declines compared to June.  

USD/JPY levels

While the market remains on the defensive below the cloud resistance at 104.08/105.45, the mood comes with a bearish bias still. On a break to test the said cloud resistance, we also have 104.15and the 20 day ma  ahead of 105.33 the 55 day ma. To the downside a strong break lower opens 100.82, the 78.6% retracement which is considered to be the last defense for the 99.00 recent low.