USD/JPY rises back towards 104.00 as Nikkei 225 regains bids

Having found solid support near 103.75 region over last hours, the USD/JPY pair is seen taking on another attempt to reclaim 104 handle, while investors set their eyes on the upcoming US retail trade and Fed Yellen’ speech in the day ahead.

USD/JPY tracks Nikkei higher

The dollar-yen pair regains poise and makes headways for a break above 104 levels, as sentiment remains underpinned by upbeat Chinese CPI data, which continues to boost risk-on flows in the spot. The pair is last seen exchanging hands at 103.94, up +0.22%, while the Nikkei 225 index advances +0.20% to 16,811 levels.

Moreover, the greenback stalled its corrective slide against its main competitors and now resumes the broader uptrend, as we head towards the US retail sales and Yellen’s speech scheduled for release later in the NA session.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104 (round figure). A break above the last, the major could test 104.50 (psychological levels) and 104.63 (3-month high) beyond the last. While to the downside, the immediate support is seen at 103.79 (5-DMA), next at 103.52 (10-DMA) and below that at 103.00 (key support).