FXStreet (Mumbai) - Markets looked past the weaker Chinese GDP figures and tracked the renewed optimism on the Asian equities, thereby boosting the USD/JPY pair. USD/JPY risk-on seeps back amid rebounding equities The USD/JPY pair trades 0.29% higher, testing session highs posted at 117.70 earlier on the day, where the hourly 200-SMA lies. The major completely recovered the Chinese GDP induced losses and reverted to daily highs as risk-sentiment gets better amid solid recovery in the Asian stocks, which lifted the demand for risk currencies such as the USD. Japan’s Nikkei jumped back in to green and trades 0.10% higher, while the Shanghai Composite index bounces +1.64% and Australia’s ASX 200 rallies 0.75%. However, the dollar-yen pair is seen struggling gains beyond 117.70 levels as the yen receives some support from the BOJ Governor Kuroda’s speech, which is underway. BOJ Kuroda reiterates that price trend is improving and the bank will adjust policy if needed to achieve the 2% price target. Meanwhile, market sentiment and the oil price movement will remain the main driver in the day ahead, as the economic calendar remains data-light for the major. Focus now shifts towards Wednesday’s US CPI report for fresh momentum on the pair. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118/118.03 (round number/ Jan 11 High). A break above the last, the major could test 118.28 (Jan 14 & 15 High). While to the downside, the immediate support is located at 117.29/24 (1h 50-SMA/ daily low) below which 116.81 (daily S1) would be tested. For more information, read our latest forex news.