USD/JPY recovers further to test 107.30 amid positive equities

The USD/JPY pair regained lost momentum and extended its recovery above 107 handle, now hovering in close proximity to session highs as the European stocks trade higher.

USD/JPY heading towards 5-DMA at 107.73

The US dollar demand returns to markets, now pushing USD/JPY to daily highs near 107.29 levels, with the bulls building onto the recovery from NFP-led slump.   At the time of writing, USD/JPY advances to 107.21, recording a 0.65% gain on the day.

Moreover, a better risk tone prevalent in the markets amid higher European stocks and oil prices, weighs on the safe-haven bids for the yen and hence, drives USD/JPY further towards 5-DMA. Meanwhile, the major now looks forward to the comments from Fed Chair Yellen lined up in the NY session for fresh USD price-action across the board.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 107.73 (5-DMA). A break above the last, the major could test 108 (round number). While to the downside, the immediate support is seen at 106.38 (Monthly Low) and below that at 106 (psychological levels).