FXStreet (Mumbai) - The Japanese yen continues to lose ground versus its American rival in the European morning, as the European stocks kicked-off this week on an upbeat note. USD/JPY on its way to hourly 50-SMA at 120.66 Currently, the USD/JPY pair trades 0.27% higher at fresh session highs of 120.63, testing hourly 50-SMA located at 120.66. The dollar-yen pair keeps pushing higher as the risk-on sentiment extends into Europe, with the major European indices witnessing a positive start to a holiday-thinned week ahead. The German DAX rises 0.20%, France’s CAC trades 0.12% higher while the Euro Stoxx 50 also gains 0.12% in opening trades. Further, markets appear to ignore the lower oil and copper prices, and resort to profit taking on their USD/JPT shorts after six back-to-back sessions of heavy losses. Moreover, the latest streak of sluggish Japanese economic data also continues to weigh on the yen. Meanwhile, the major is expected to track the sentiment on the European markets in absence of significant drivers in a holiday-quiet day ahead. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 120.66 (1h 50-SMA). A break above the last, the major could test 121 (10-DMA). While to the downside, the immediate support is located at 120.23 (daily pivot) below which 120.02 (Dec 25 Low) would be tested. For more information, read our latest forex news.