USD/JPY bounces-off 104.50, 105 back on sight?

The selling-wave caught by the USD/JPY pair during the late-Asian trades lost legs near 104.50 handle, and from there the prices staged a minor-recovery back towards 105 handle.

USD/JPY finds support ahead of 20-DMA at 104.44

The US dollar is seen making minor-recovery attempts against the Japanese yen as we head into the European session, amid a recovery in the risk sentiment after the European indices futures trade modestly flat, pointing towards a steady start to the European markets.

Moreover, the yen continues to remain on the bids as the major extends post-FOMC correction, largely tracking the USD index lower.

Meanwhile, markets digest the latest report from the Japanese government, noting that, ‘Abe's over JPY 28 trln stimulus package is expected to include around JPY 7 trln in spending’.

At the time of writing, USD/JPY drops -0.66% to 104.70, recovering from a dip to session lows struck at 104.49 levels earlier on the day. Markets now await a slew of Japanese economic data and the BOJ decision for fresh direction on the major.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 105.39 (5-DMA). A break above the last, the major could test 105.79 (10-DMA). While to the downside, the immediate support is seen at 104.44 (20-DMA) and below that at 104 (round number).