FxWirePro: USD/JPY snaps 2-day losing streak, risk aversion to limit upside potential

USD/JPY chart - Trading View 

USD/JPY was trading 0.10% higher on the day at 105.42 as the pair snaps a 2-day losing streak.

However, upside looks limited as market remains risk averse amid coronavirus and U.S. stimulus woes and continuing US-China tussle.

On the data front, Japan’s September month Money Supply increased from 8.6% prior and 8.1% forecast to 9.0% MoM. 

Further, China's Trade Balance for September in USD terms, showed a narrowing trade surplus, in light of a big jump in imports.

Data showed China's Trade Balance came in at +37B versus +59.98B expected and +58.9B previous.

Exports (YoY) stood at +9.9% vs. +10.0% expected and +9.5% last. While Imports (YoY) were at +13.2% vs. +0.2% expected and -2.1% last.

US 10-year Treasury yields fell two basis points (bps) to 0.75% supporting the U.S. dollar across the board. 

Technical studies for the pair support weakness. Price has failed to extend break above 50-DMA. 

Bearish 'Death Cross' formation on the hourly charts The pair is set to slide lower in a downward sloping channel.

Bearish potential remains intact. 20-DMA is immediate support at 105.35. Decisive close below will see drag lower.

Support levels - 105.29 (5W MA), 104.94 (Oct 2nd low), 104 (Sept 21 low)

Resistance levels - 105.66 (Nearly converged 200H MA and 5-DMA), 105.76 (50-DMA), 106