• USD/JPY spot remains contained by 122.26-123.77 2/3 week range, repeated failures below 122.40 which is 23.6% Fib retrace of 118.07-123.77 rise means bias marginally on upside.
  
  
• China trade data-led risk-off supported the Japanese Yen higher, which snaped losses and edged higher against USD. 
  
  
• China trade balance came in at ($54.1B, below expectations at $63.3B in November. Exports declined more than previous, coming at -3.7% against a -2.9% drop expected. Dismal data refuelled concerns over the health of China's economy. 
  
  
• USD/JPY fell as low as 122.99, but downside found support by daily Tenkan at 122.99, the pair has pared losses to currently trade at 123.07.
  
  
• Daily Techs point South, breaks below 122.90 could see further falls which could provide good entry points. We would wait for dips to go long. 

Resistance Levels:

R1: 123.56 (Daily High Dec 3)

R2: 123.68 (Daily High Dec 2)

R3: 123.77 (Daily High Nov 18)

Support Levels:

S1: 122.99 (Tenkan-Sen)

S2: 122.48 (Daily Low Dec 4)

S3: 122.30 (Daily Low Dec 3)