FXStreet (Guatemala) - USD/JPY is testing the 100 sma on the hourly chart at 117.62 with spot trading at 117.60 at time of writing. The recovery is well under way since last week's lows of 116.50 while risk sentiment has started to improve somewhat given the shock of the Chinese crisis has now been digested and markets have started to adjust. However, we are not out of the woods yet while much depends on the pace of which the Fed will continue, if at all, in normalising rates and we still do not have any clarity from the BoJ as to whether they are indeed going to extend their QQE in order to try and achieve their 2% inflation rate target. For today, risk stays with China in the forthcoming data events with GDP Q4, retails sales and industrial production being the greater of three's risk profile for the FX space outside of any major surprises in GDP expected to fall just short of the 7% that China had forecasted. USD/JPY levels USD/JPY levels Technically, we are in slightly less bearish territory short-term with this recent acceleration of the recovery, but as Valeria Bednarik, chief analyst at FXStreet explained, "In the 4 hours chart, the technical indicators have turned sharply lower after failing to overcome their mid-lines, as the price continues developing well below a strongly bearish 100 SMA, supporting the shorter term view and favoring a new leg south for this Tuesday." For more information, read our latest forex news.