The bid tone around the USD just got better over the last hour, with the renewed bout of buying interest seen in the Japanese stocks driving USD/JPY further northwards. USD/JPY extends further towards 117.50 The major bounced-off a brief dip below 5-DMA at 117.19 and ran through fresh bids as the improving appetite for riskier assets, further boosted the demand for USD. At the time of writing, the major trades 0.45% higher near fresh session highs of 117.44, having surpassed post-NFP high reached at 117.40 last Friday. The dollar-yen pair found fresh impetus from the turnaround in the risk conditions, after the Japanese stocks erased losses and rebounded sharply higher backed renewed oil price rally. The Japanese benchmark index now rallies +1.36% to 17,059. Looking ahead, the oil price action will lead the sentiment on the global markets, while on the data front, the US labour market conditions index is due for release later today. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 117.83/118 (Jan 21 High/ round number). A break above the last, the major could test 118.28 (1h 100-SMA). While to the downside, the immediate support is seen at 116.86/83 (Daily pivot & low) and below that at 116.38/116 (post-NFP low/ psychological levels). For more information, read our latest forex news.