FXStreet (Mumbai) - The USD/JPY pair keeps the bid tone intact and rallied to fresh five-day over the last hours, as risk-on moods persist in full steam, tracking the rebound in oil and global stocks. USD/JPY hovers around 20-DMA The USD/JPY pair trades 0.41% higher at 118.19, easing-off fresh five-day highs of 118.29 reached last hours. The US dollar continues to batter its Japanese counterpart in the mid-European trades, as the persisting risk-on environment dulls the yen’s appeal as a safe-haven. Markets prefer to take the yield advantage and invest their funds into higher-yielding assets such as equities, oil and industrial metals. Moreover, the Japanese currency remains sold-into more BOJ easing chatter, with next Friday’s BOJ meeting eagerly awaited. However, before the BOJ meeting, we have the Fed decision next week, which will be closely watched for more cues on the future rate hike prospects, especially now that the global central bankers’ are turning more dovish than before in wake of the recent heightened global uncertainties mainly triggered by the oil price decline and China slowdown fears. Next on tap for the major is the US manufacturing PMI and existing home sales data due for release in the NY session. Markets expect a strong 9.2% jump in existing new home sales to 5.20 million in December, rebounding from the 10.5% drop seen in November. The factory PMI is set to stay almost flat m/m, and expected to come in at 51.0 in Jan. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118.50 (round number). A break above the last, the major could test 118.77 (Jan 7 & 8 High). While to the downside, the immediate support is located at 117.49/47 (1h 200-SMA/ daily low) below which 117 (psychological levels) would be tested. For more information, read our latest forex news.