USD/JPY re-attempts 106.00 as USD catches fresh bid

Having bottomed near 105.80 region last hour, the USD/JPY pair is seen recovering some ground as sentiment appear to have improved around the Japanese stocks.

USD/JPY bounces-off 105.8s

The US dollar is seen trimming losses against its Japanese rival in the Asian session, sending USD/JPY back to 106 handle, in response returning demand for the greenback against its major peers as bulls continue to cheer upbeat US housing market data released a day before. Meanwhile, the USD index jumps +0.12% to hit session highs at 97.12.

However, the major struggles to take on the recovery beyond 106 handle as the Japanese stocks trade with size-able losses. At the time of writing the USD/JPY pair trades -0.13% at 105.99, while the Nikkei 225 drops -0.75% to 16,600 points.

Looking ahead, the persistent risk trends and the USD price-action will continue to drive the major in absence of a data-empty US docket today.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 106.50 (Multi-week highs). A break above the last, the major could test 106.85 (post-Brexit high). While to the downside, the immediate support is seen at 105.71 (5-DMA) and below that at 105.43 (50-DMA).