The USD/JPY pair finally broke the consolidation box post-European open and climbed back higher on the back a recovery in the oil as well as European stock markets. USD/JPY breaks through 111.55/60 barrier The USD bulls fought back control in the last hour, with the US dollar recovering almost entire bosses versus its Japanese counterpart, on improving sentiment towards riskier assets such as oil, equities and the greenback. At the time of writing, USD/JPY jumps to 111.65, hovering close to fresh session highs posted at 111.68 some minutes ago. Moreover, increasing expectations of Fed rate hikes in June following better than expected US employment data, also boosted the sentiment around the buck and aided the broad based recovery. Meanwhile, the USD index rises 0.18% to 94.75, eyeing a test of 95 handle. Moving on, the US factory orders and LMCI is on the cards later in the NY session, while the key event for this week is expected to be the FOMC March meeting minutes, which will roll out further details on the Fed’s cautious/ dovish stance on the rate hike outlook. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 111.99/112 (5-DMA/ round number). A break above the last, the major could test 112.66/69 (Mar 31 High/ 1h 200-SMA). While to the downside, the immediate support is seen at 111.36/20 (Mar 22 & 21 Low) and below that at 111/ 110.80 (Mar 18 Low). For more information, read our latest forex news.