FXStreet (Mumbai) - The USD/JPY pair extends its gradual ascent into the European session and tests highs near 122 handle, received fresh impetus from an elevated start to the European markets. USD/JPY trades around hourly 200-SMA at 121.95 Currently, the USD/JPY pair trades 0.23% higher at 121.97, flirting with fresh session highs reached at 122.01 some minutes ago. The major ran through fresh bids as the higher opening on the European indices brought along renewed appetite for riskier assets, thus, pushing the USD back on the bids against its major peers. The German DAX gains 0.25%, the UK’s FTSE rises 0.42% and the Euro Stoxx advances 0.20% so far in opening hours. Also, weaker Japanese manufacturing data released earlier on the day added to the downside in the yen against the buck. Meanwhile, markets continue to bid up the US currency in wake of the first Fed hike due to be announced later today while the upcoming macro releases from the US are likely to be ignored. USD/JPY Technical levels to watch The prices trade firmer and find the immediate resistance at 121.09/11 (100 & 50-DMA). A break above the last, the major could test 122.38 (20-DMA). While to the downside, the immediate support is located at 121.59 (daily low) below which 121.34 (1h 100-SMA) would be tested. ------- 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. ------- For more information, read our latest forex news.