FXStreet (Mumbai) - The bid tone around the USD/JPY pair appears to ease a bit heading into early Europe, as markets consolidate heavy gains ahead of the European open. USD/JPY back below 122 handle Currently, the USD/JPY pair trades 0.30% higher at 121.95, retracing from session highs posted at 122.23 in mid-Asia. The major recedes gains mirroring the moves seen in the US dollar against its major peers. Moreover, the yen continues to lose ground on divergent monetary policy paths, with economists expecting BOJ to do more easing and the Japanese currency to weakness in the H1 2016. While the Fed remains on track to raise rates next week at its policy meeting on Dec 16. Later today, a flurry of crucial macro data is lined up for release which may have some impact on the USD moves, eventually influencing USD/JPY. Besides, sentiment on the European and US equities will also play a crucial role. ------- 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 trade turns lower and find immediate support at 121.18 (100-DMA) below which 121.07 (Dec 9 Low) would be tested. While to the upside, the immediate resistance is now placed at 122.27/30 (daily R1/ 5-DMA). A break above the last, the major could test 122.50/66 (1h 100-SMA/ 10-DMA). For more information, read our latest forex news.