USD/JPY wipes-out losses, re-takes 110.30

The USD bulls fought back control as we head into early Europe, lifting USD/JPY from near 110 handle back towards three-week tops.

USD/JPY re-takes 110.30

The dollar-yen pair found fresh bids near 110 handle and regained northward momentum as the Japanese stocks recovered losses, weighing down on the demand for safe-haven yen.

Moreover, the US dollar resumed its winning streak against its major peers over the last hour, which also lent support to the rebound in the major. At the time of writing, USD/JPY trades dead flat at 110.20, heading for a retest of three-week lows reached earlier today at 110.27.

Markets now await the European open to gauge the market sentiment and hence, further moves in the USD/JPY ahead of the US jobless claims and regional manufacturing data.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 110.27 (3-week high). A break above the last, the major could test 110.50 (round figure). While to the downside, the immediate support is seen at 109.83/76 (1h 20-SMA/ 50-DMA) and below that at 109.50/44 (psychological levels/ 1h 50-SMA).