FXStreet (Mumbai) - The bid tone surrounding the USD/JPY pair keeps growing bigger heading towards the European open, as risk sentiment appears to improve underpinning further upside in the major. USD/JPY eyes 50-SMA on 1hr sticks at 121.44 Currently, the USD/JPY pair trades 0.24% higher at fresh session highs of 121.28, having found strong support at 100-DMA (121.11). The major keeps pushing higher above 121 handle, with the bids boosted by a slight turnaround in risk-conditions and prevalent broad based US dollar strength. Risk-aversion seen during Asia seems to have eased, with the Chinese indices finishing sharply higher. China’s A50 index closed +2.80% and the Shanghai Composite index also finished 2.51% higher. While the European indices futures are seen posting moderate gains and point towards a positive start on the European markets. Adding to the positive sentiment on the pair, the US dollar continues to strengthen against its major peers as Fed rate hike this week is certain, with markets expecting the Fed to hike by 25bps and also provide fresh cues on the future course of policy tightening. Markets moved past upbeat Tankan manufacturing index and now await the European open for fresh incentives on the major in absence of economics news in the day ahead. ------- What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too. ------- USD/JPY Technical levels to watch The prices head higher and find the immediate resistance at 121.44 (1h 50-SMA). A break above the last, the major could test 121.92 (200-DMA). While to the downside, the immediate support is located at 121.11 (100-DMA) below which 120.64 (daily low/ S1) would be tested. For more information, read our latest forex news.