FXStreet (Mumbai) - The US dollar keeps the upper hand over its Japanese counterpart as we step into the Tokyo opening trades, with USD/JPY finding fresh support near the hourly 10-SMA placed at 123.16. USD/JPY trades above all major DMAs Currently, the USD/JPY pair rises 0.13% to 123.27 heading towards weekly highs reached at 123.36 on Monday. The major extends its bullish momentum into a third day this session on increased risk-on flows backed by a positive start on the Japanese stocks. Nikkei now rallies 0.60% to 19,861. While Australia’s S&P/ASX jumps 1.30% to 5,237 points. Moreover, the greenback keeps range around fresh multi-month highs against its major competitors, benefiting from the divergent monetary policy trajectories globally. Fed appears to be the only central bank set for a rate lift-off this year. As a result, the shorter duration treasury yields, the 2-year one, hovers near five and a half year highs around 0.942, up 0.90% so far. Looking ahead, it’s a busy session for the Asian traders, with a series of Chinese manufacturing and services PMIs on the cards. While Japan’s final manufacturing PMI will be also reported, although little impact expected on USD/JPY. USD/JPY Technical levels to watch The prices trade firmer and find the immediate resistance at 123.36 (Nov 30 High). A break above the last, the major could test 123.64 (Nov 19 High). While to the downside, the immediate support is placed at 123.05 (1h 20-SMA) below which 122.85/83 (5/10-DMA) would be tested. For more information, read our latest forex news.