USD/JPY: Bears continue to guard 104 barrier in Europe

USD/JPY is seen failing another attempt to break above 104 handle during the European session, having its recovery from session lows just shy of the last.

USD/JPY capped by 104 handle

The bulls find it difficult to extend the upmove above 104 handle as the US dollar appears to have embarked upon a corrective slide after it hit fresh eight-month highs against its major peers.

However, the major found support just below 5-DMA and re-tried another run higher as persisting risk-on moods weigh down on the safe-haven yen. The European stocks climb higher led by higher banking sector stocks, with the pan-European benchmark Euro Stoxx 50

The USD/JPY pair is seen last exchanging hands at 103.88, after having hit fresh session highs at 103.95 levels, up 0.11% on the day.

Focus now shifts to a string of Fed speak and the US manufacturing PMI data due later on the day for fresh impetus.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104.18 (daily R3). A break above the last, the major could test 104.50 (psychological levels) and 104.63 (3-month high) beyond the last. While to the downside, the immediate support is seen at 103.82 (5-DMA) next at 103.48 (20-DMA) and below that at 103.00 (key support).