FXStreet (Mumbai) - The US dollar recovered losses and now flipped into the green against its Japanese rival heading into mid-Asia, with USD/JPY finally regaining 121 handle. USD/JPY ignores Asian markets sell-off, tests 5-DMA at 121.16 Currently, the USD/JPY pair trades modestly higher at fresh session highs of 121.13, having found renewed bids over last hours. After bottoming near 120.60 region in early Asia, the USD/JPY pair picked-up significant strength and turned positive on the back of a strengthening US dollar across the board on imminent Fed rate hike heading into Wednesday’s Fed decision. The US dollar index rises 0.25% to 97.85 levels. Moreover, the major caught fresh bid tone this session, largely unperturbed by the persisting risk-off sentiment on the Asian stocks, with the Nikkei tanking -2.46%, Australia’s S&P/ASX down -1.31% and Hong Kong’s Hang Seng falling -1.84%. While the Japanese yen gave back upbeat Tankan indices-inspired gains, notwithstanding greenback strength. Later today, nothing relevant in terms of economic news for the major and as such the sentiment backed by Wednesday’s Fed policy decision will drive markets. ------- 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. ------- USD/JPY Technical levels to watch The prices head higher and find the immediate resistance at 121.48 (1h 50-SMA). A break above the last, the major could test 121.92 (200-DMA). While to the downside, the immediate support is located at 120.64 (daily low/ S1) below which 120.38 (daily S2) would be tested. For more information, read our latest forex news.