USD/JPY rebounds sharply towards 106.00

Having bottomed just ahead of 105 barrier, the USD/JPY pair staged a solid comeback over the last couple of hours in a bid to reclaim 106 handle amid a risk-friendly market profile.

USD/JPY break above 50-DMA at 105.76 once again

The dollar-yen pair caught a fresh bid-wave post-Tokyo open, reversing the overnight retreat, as the Japanese stocks prolongs its upward trajectory and keeps the sentiment buoyed. At the time of writing the USD/JPY pair is seen hovering around 105.75, moving off-highs reached 105.84, still up +0.34% on the day.

Markets ignored the French attacks suspected by ISIS again on the Bastille Day celebrations. Apparently a truck rammed into a crowd of people celebrating Bastille Day, killing at least 30 people, while gunshots firing were also reported.

Meanwhile, talks surrounding the helicopter money continue to weigh heavily on the yen, stoking further gains in the USD/JPY pair. Next of note for the major remains a slew of Chinese macro releases ahead of a fresh batch of US economic data due later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 106 (round number). A break above the last, the major could test 106.21 (daily R2). While to the downside, the immediate support is seen at 105 (key support) and below that at 104.64 (5-DMA).