FXStreet (Mumbai) - The USD/JPY pair caught a fresh bid tone beyond a beak of 200-DMA and stormed its way through 122 handle, extending its recovery from Monday’s extensive slide. USD/JPY supported above 50-DMA at 121.97 Currently, the USD/JPY pair trades 0.41% higher at 122.08, hovering close to fresh session highs posted at 122.15 last minutes. The bid tone on the USD keeps growing bigger heading into mid-Asian trades, sending USD/JPY higher into the green towards 5-DMA at 122.31. The major extends its correction higher and gains further traction on the back of a solid rebound staged by the Japanese stocks, which helped improve investors’ sentiment. The Japanese benchmark, the Nikkei jumps over 1% to 19,250 points. Moreover, anticipation of a Fed rate rise closing in on next week’s Fed meeting also underpins the US dollar, adding to upside in USD/JPY. Looking ahead, markets now await a host of key US economic updates due later today for fresh cues on the pair. USD/JPY Technical levels to watch The prices trade firmer and find the immediate resistance is now placed at 122.27/31 (daily R1/ 5-DMA). A break above the last, the major could test 122.55/67 (1h 100-SMA/ 10-DMA). While the immediate support is placed at 121.18 (100-DMA) below which 121.07 (Dec 9 Low) would be tested. For more information, read our latest forex news.