FXStreet (Mumbai) - The US dollar is seen trying hard to regain lost ground versus its Japanese counterpart ahead of Europe open, lifting USD/JPY back near the opening price. USD/JPY tests hourly 200-SMA now placed at 122.85 Currently, the USD/JPY pair trades modestly flat at 122.84, testing daily highs reached at 122.86. USD/JPY jumps back on the bids in the European morning, as the Japanese yen takes a backseat with markets anticipating the European markets to have a steady start to this week. The German DAX index futures are seen recovering losses and trades marginally lower, while the UK’s FTSE futures are seen modestly flat. Moreover, markets turn their attention towards a host of economic releases from the US, with the crucial NFP data to confirm a Dec rate rise. Thereby, keeping the sentiment around the USD/JPY pair buoyed. Meanwhile, the USD index rises 0.14% to 100.20, hovering near multi-month highs. Earlier in Asia, Japan reported its retail sales data, which showed a 1.8% y/y increase in October, after slipping 0.1% in September. Markets expected a 0.9% rise last month. While on monthly basis, retail trades were up 1.1% in October, following a 0.7% increase in Sept. Looking ahead, markets now await the pending home sales and Chicago PMI data due later today for fresh cues. While the sentiment on the European and the US equities will also have a bearing on the major. USD/JPY Technical levels to watch The prices trade near session lows and finds immediate support at 122.20 (Nov 16 Low) below which 121.75 (200-DMA) would be tested. To the topside, the immediate resistance is located at 122.91 (20-DMA). A break above the last, the major could test 123.09 (Nov 12 High). For more information, read our latest forex news.