USD/JPY recovers in tandem with DXY & Nikkei

The dollar-yen pair’s recovery gained further traction in the late-Asian trades, extending the pullback from a dip just ahead of 116 handle, as the bulls now look to regain 117 handle.

A sharp reversal in the US dollar across the board from 2-week troughs combined with a recovery seen in the Japanese stocks, help USD/JPY to jump back into the bids and extend the rebound.

The  pair is last seen exchanging hands at 116.72, hovering close to fresh session highs reached at 116.81, up +0.15% on the day, while the Nikkei 22 index trims losses to now trade around 19,110 points.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.01 (5-DMA). A break above the last, the major could test 117.27 (10-DMA) and 117.75 (daily R2) beyond the last. While to the downside, the immediate support is seen at 116.05 (2-week lows) next at 115.59 (daily S2) and below that at 115 (psychological levels).