USD/JPY: Bulls gather pace, re-takes 104.50

After a brief phase of upside consolidation seen almost during the Asian trades, the USD/JPY pair regains poise and seems to re-take 104.50 levels as we head into early Europe.

USD/JPY takes-out Sept highs

The bulls are seen bidding up for further upside as sentiment around the greenback remains favorable amid rising treasury yields across the curve, with a Dec rate hike on the cards now after most Fed members have made clear they expect to raise rates before the end of the year.

Moreover, renewed buying across the commodities’ space coupled with firmer Asian equities, continue to keep risk appetite intact and therefore, weighs down on the safe-haven yen.

The USD/JPY pair is seen last exchanging hands at 104.43, testing fresh three-month highs at 104.50 levels, up 0.24% on the day.

Looking ahead, the major will track persisting risk-trends until the NA session, with the US consumer confidence and regional manufacturing gauge due on the cards.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104.71 (daily R2). A break above the last, the major could test 105 (psychological levels) and 105.34 (Jul 27 high) beyond the last. While to the downside, the immediate support is seen at 104.07/104 (5-DMA/ round figure) next at 103.81 (daily S1) and below that at 103.64 (20-DMA).