FXStreet (Mumbai) - USD/JPY extends its side-trend into the European session and keeps range below the hourly around 5-DMA placed at 120.36, failing once again near daily highs. USD/JPY in search of fresh incentives Currently, the USD/JPY pair trades modestly flat at 120.36, unable to extend beyond 120.42 daily highs. The major continues to trade around a flat-line, failing to find support from the renewed optimism seen on the European stocks, spurred by hints of further ECB easing next year. Meanwhile, the major remains in a wait-and-see mode awaiting fresh cues from the US economic data due on the cards later today and on Thursday. Tuesday sees a slew of macro updates, including the consumer confidence and goods trade balance while the weekly US jobless claims will be reported on Thursday. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 120.68/75 (1h 100-SMA/10-DMA). A break above the last, the major could test 121 (round number). While to the downside, the immediate support is located at 120.10 (daily S1) below which 119.73 (Oct 21 Low) would be tested. For more information, read our latest forex news.