USD/JPY back on the bids near 109.30, 50-DMA eyed

A renewed bout of buying interest gripped the USD/JPY pair in early Europe, as the JPY bulls lost complete control after the Nikkei regained momentum and settled above 1% for today.

USD/JPY heading towards 50-DMA at 109.88

The dollar-yen pair caught a sudden bid wave and stormed its way through 109 barrier, after the oil prices firmed and resulted in improved risk conditions, which almost killed the demand for the safe-haven yen. At the moment, the USD/JPY pair hovers near session highs at 109.29, up +0.24% on the day, while Japan’s Nikkei 225 index closed up +1.13%.

Markets now await the European open to gauge the sentiment on the European bourses, while focus continues to remain on the US economic data due for release later in the NY session.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.36/50 (May 10 & 13 High). A break above the last, the major could test 109.88/110 (50-DMA/ psychological levels). While to the downside, the immediate support is seen at 108.50/35 (20-DMA) and below that at 108.00 (round number).