FXStreet (Mumbai) - The bid tone surrounding the USD/JPY pair keeps decreasing as we progress towards the European open, as the greenback recedes Fed-inspired gains against its major peers. USD/JPY halts a 3-day rally Currently, the USD/JPY pair trades 0.07% higher at 122.31, now heading towards the 50-DMA support placed at 122.17. The major took a breather in its upsurge and erased a major chunk of gains as markets moved past the Fed hike news and now await the European open for further momentum. While the USD/JPY pair finds support from the dismal Japanese trade data, which continues to weigh on the yen. Japan's merchandise trade balance went from a surplus of ¥111.5 billion in October to a shortfall of ¥379.7 billion last month. Looking ahead, the US dollar may remain bid on hawkish Fed decision and is likely to garner further cues from a slew of macro data from the US due later in the NY session. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 122.85 (daily R1). A break above the last, the major could test 123/123.06 (round number/ Dec 9 High). While to the downside, the immediate support is located at 122.11 (50-DMA) below which 122 (1h 200-SMA) would be tested. ------- What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too. ------- For more information, read our latest forex news.