USD/JPY rebounds to 111.00 as Nikkei hits session highs

The bulls regained control in the mid-Asian session, allowing a solid recovery in the USD/JPY pair in an attempt to reclaim 111 handle and beyond.

USD/JPY in half-yearly highs

The dollar-yen pair failed to sustain near fresh multi-month highs above 111 handle, and fell sharply to 110.65 lows in the last hour, before recovering some ground to now re-attempt 111 barrier amid a renewed risk-on wave, which sent the Japanese stocks higher and hence, boosted the flows in the major.

The major is last seen exchanging hands at 111, up +0.09% on the day, re-approaching fresh six-month highs reached earlier at 111.12. While the Japanese benchmark, the Nikkei 225 index jumps +0.60% to fresh session highs of 18,079.50 points.

In absence of significant economic releases in the day ahead, the spot will continue to track risk trends and USD price-action for further momentum.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 111.12 (multi-month high). A break above the last, the major could test 111.46 (May high) and 112 (zero figure) beyond the last. While to the downside, the immediate support is seen at 110.65 (daily low) next at 110.40 (5-DMA) and below that at 110 (key support).

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