FXStreet (Mumbai) - The USD/JPY pair bounced-off session lows just ahead of 117 handle and reverted to daily highs near 117.40 region as the bulls cheered an upbeat start to the European markets. USD/JPY risk-on persists amid higher equities The USD/JPY pair trades 0.32% at fresh session highs of 117.44 last minutes. Improving appetite for risk assets, as reflected by the European stocks rally and a strengthening US dollar bolstered the recovery in USD/JPY from near five-month lows in the 116.70 arena. Germany’s DAX rallies +1.10%, the UK FTSE shoots 0.75% higher, while the pan-European benchmark, the Euro Stoxx 50 advances +1.35%. The positive close on the Chinese stock markets on the back of the new rules introduced by PBOC on offshore yuan markets as well as a minor recovery seen in oil prices appear to lift overall market sentiment. Moreover, softer economic conditions in Japan’s regions as showed by the BOJ quarterly assessment report and talking down of the yen by BOJ Osaka branch manager further added to the yen weakness across the board, and boosted USD/JPY towards 117.50. Meanwhile, low volumes and limited volatility will persist today as the US markets are closed on a public holiday. While stocks and oil will remain in focus in a relative data-light trading session ahead. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 117.46/54 (10-DMA/ 1h 50-SMA). A break above the last, the major could test 117.69/84 (1h 100 & 200-SMA). While to the downside, the immediate support is located at 116.81/72 (daily S1 & low) below which 116.51 (Jan 15 Low) would be tested. For more information, read our latest forex news.