FXStreet (Mumbai) - The bid tone on the JPY is seen easing post-European open, sending USD/JPY back towards 123 handle as risk-on returns to markets. USD/JPY: Risk-on seeps back Currently, the USD/JPY pair trades -0.09% lower at 122.81, recovering from session lows reached at 122.64 levels. The major found renewed bids this session as the yen loses ground somewhat on the back of a rebound in European stocks, with a major shift in risk conditions evident. However, the JPY bulls continue to fight for control as upbeat Japan’s fundamentals continue to underpin the domestic currency. After Japan dodged a technical recession in Q3, the core machinery orders released earlier on the day unexpectedly rose 10.7% in Oct versus a drop of -1.5% predicted, signalling stronger capex. Looking ahead, the major will continue to track the sentiment on the European stocks as well as on the Wall Street amid data-quiet trading session ahead. USD/JPY Technical levels to watch The prices drop to lows and find the immediate support placed at 122.44 (Dec 4 low) below which 122.23 (Nov 25 low) would be tested. To the top-side, the immediate resistance is now placed at hourly 200-SMA (123.02). A break above the last, the major could test 123.42/47 (Dec 8 & 7 high). For more information, read our latest forex news.