A classic risk-off sentiment extended into Tokyo open, with the yen jumping back on the bids as the Japanese equities dived deeper in the red. USD/JPY sold-off at hourly 20-SMA The dollar-yen’s recovery from NY low lost legs at the hourly 20-SMA placed at 112.77, and the prices dropped sharply from there, as the Japanese traders hit their desks and tracked the heavy losses in the US stocks and oil overnight. The Japanese currency remained better amid persisting risk-off trades, which boosted the demand for the safe-havens such as the yen. At the time of writing, USD/JPY drops to fresh session lows at 112.52, down -0.07% on the day, while the Nikkei 225 sinks -1.29% to 16/562 points. The ongoing risk-off moods were triggered by worse-than expected Chinese trade figures and oil price sell-off, which rattled investors’ confidence yet again and reversed most of last week’s gains seen in the USD/JPY pair. Meanwhile, amid a lack of fresh fundamental triggers for the major today, the persisting risk-off sentiment will continue to dominate markets ahead of Thursday’s China CPI figures and jobless claims from the US. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 112.77 (daily high/ 1h 20-SMA). A break above the last, the major could test 113 (round number). While to the downside, the immediate support is seen at 112.44 (Mar 8 Low) and below that at 112.14/00 (Mar 1 Low/ psychological levels). For more information, read our latest forex news.