USD/JPY extends the rebound to 117.50

The bid tone around the US dollar is seen growing bigger in the European session, driving USD/JPY further beyond 117 handle.

The pair is last seen exchanging hands at fresh three-day highs of 117.47, jumping +0.41% on the day. The recovery mode seen around the USD/JPY pair appears to have gained further traction in the European session, as the demand for US dollar is seen returning amid holiday-thinned markets.

Resurgence of USD buying is largely on the back of investors creating fresh long positions heading into the first day of 2017, and now awaiting fresh batch of significant US macro releases due on the cards later this week, with the highly influential payrolls data on tap this Friday.

While the yen fails to take advantage from slightly risk-averse market conditions, as the European equities kick-off the New Year on a negative note.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.50 (psychological levels). A break above the last, the major could test 117.83 (Dec 28 high) and 118 (zero figure) beyond the last. While to the downside, the immediate support is seen at 116.45 (daily S3) next at 116.05 (2-week lows) and below that at 115.80 (psychological levels).