USD/JPY re-takes 106 as Nikkei bounces over 1%

The bulls were rescued by a quick recovery in the Japanese stocks, sending USD/JPY back toward 106 handle in early Europe.

USD/JPY catches fresh bid-Europe

The Japanese yen is seen eroded a part of gains as sentiment around the USDJPY pair seems to have improved after the Japanese stocks stalled its retreat and swung higher in the positive territory.

At the time of writing the USD/JPY pair is seen recovering to 105.91, heading for a retest of 106 handle, and recording a -0.24% loss on the day. Meanwhile, the Nikkei 225 index jumps +1.23% to 16,700 versus +0.40% seen previously.

Looking ahead, the major will continue to get influenced by the sentiment around the oil and stock markets ahead of the US datasets lined up for release in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 106.50 (Multi-week highs). A break above the last, the major could test 106.85 (post-Brexit high). While to the downside, the immediate support is seen at 105.50/48 (5 & 50-DMA) and below that at 105.04 (Jul 18 low).