USD/JPY: Bulls in control, testing highs near 115.40

The ongoing recovery in USD/JPY gathered steam over the last hour, now pushing the rate towards the mid-point of 115 handle.

USD/JPY looks to regain 116 levels

The dollar-yen pair extends its renewed upmove as the greenback picks-up significant strength against its major rivals and resumes the recent uptrend amid a better risk tone prevalent in the markets.

However, further upside appears limited amid extended weakness in the US treasury yields across the curve, which keeps a check on the US dollar. The major is last seen changing hands at 115.35, flirting with daily highs of 115.40, up +0.28% on the day.

Amid a data-dry US docket, next of note for the major remains the Tankan manufacturing data due out in the Asian morning, ahead of the US retail sales and PPI data. While the Fed outcome will hog the limelight tomorrow.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 115.50 (psychological levels). A break above the last, the major could test 116 (zero figure) and 116.12 (multi-month high) beyond the last. While to the downside, the immediate support is seen at 114.75 (daily low) next at 114.37 (10-DMA) and below that at 114.02 (daily S2).