FXStreet (Mumbai) - The USD/JPY pair found renewed bids near 120.40 region and reverted towards daily highs at 5-DMA as the bulls find support from higher Japanese equities. USD/JPY could rise to 10-DMA at 120.99 Currently, the USD/JPY pair trades 0.18% higher at 120.50, testing session highs reached at 120.54 in early Asia. The major picked-up strength and extended higher as markets received fresh impetus from renewed risk-on sentiment after the Japanese stocks accelerated to the upside. The benchmark Nikkei jumps 0.70% to 18,900. Moreover, the losses in the yen versus its US counterpart could be also partly attributed to the weak datasets from Japan released earlier today. Industrial production in Japan dropped 1.0% m/m in November, missing forecasts for a decline of 0.5% following the 1.4% gain in October. While the total value of retail sales in Japan was down 1.0% on year in November. Later today, the major is likely to remain underpinned on the back of low liquidity while lack of fresh fundamentals may restrict further upside. Most global markets remain closed today in account of Boxing Day holiday. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 120.68 (1h 50-SMA). A break above the last, the major could test 120.99 (10-DMA). While to the downside, the immediate support is located at 120.23 (daily pivot) below which 120.02 (Dec 25 Low) would be tested. For more information, read our latest forex news.