The bid tone surrounding the USD/JPY pair keeps growing bigger as we progress towards the early European trades, as the major tracks the gains in the Japanese stocks. USD/JPY advance through hourly 100-SMA at 112.43 The extension of the rebound in the Japanese indices boosted the sentiment around the USD/JPY pair, driving the rate further away from multi-month lows. At the time of writing, the major rallies 0.33% to 112.56, off daily highs printed at 112.62. While the Japanese benchmark index, the Nikkei 225 rockets +1.75% to 16,200 levels. Moreover, markets continue to weigh BOJ’s Kiuchi’s comments, which suggested that the negative interest rates policy adopted by the BOJ could destabilize financial markets. While Fed’s Bullard’s optimistic outlook on the US inflation expectations underpin the upward moves in the greenback. Looking ahead, the oil price action will continue to drive the markets ahead of the crucial US durable goods data release that may have major impact on the USD/JPY pair. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 112.80 (key resistance). A break above the last, the major could test 113/113.08 (round number/ 10-DMA). While to the downside, the immediate support is seen at 111.82/80 (1h 20-SMA/ daily pivot) and below that at 111.05/110.98 (Feb 24 & 11 Low). For more information, read our latest forex news.