USD/JPY re-takes 104.50 as Nikkei pushes higher

A renewed buying interest gripped the USD/JPY pair over the last, taking the major nearly 50-pips higher towards daily highs reached at the mid-point of 104 handle.

USD/JPY bounces-off 104.00

The yen got sold-off into improving risk appetite as the Japanese stocks advanced further alongside oil prices, thereby lifting USD/JPY from 104 – key psychological level. At the time of writing the USD/JPY pair is seen testing daily highs near 104.45 region, down 0.07% on the day.

However, the upside appears to lack follow-through as a fresh selling seen in the US dollar against its major peers, weighs down on the major. Next in focus for the pair remains the US PPI and unemployment claims data, while the BOE events could also have a strong bearing on the yen markets.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 104.88/104.97 (Jul 13 & 12 high). A break above the last, the major could test 105.24 (daily R2). While to the downside, the immediate support is seen at 103.34 (5-DMA) and below that at 102.75 (20-DMA).