FXStreet (Mumbai) - The USD bulls are seen fighting hard to retain control at the Tokyo open, with USD/JPY clinching previous gains and now eyeing for a test of post-NFP highs near 123.60. USD/JPY trades above hourly 20-SMA Currently, the USD/JPY pair trades flat at 123.43, quickly retreating from close to Tuesday’s highs reached at 123.49. The major halted its 2-day rally and consolidates the heavy gains witnessed on Tuesday, after the greenback was bolstered by in-line with estimates US CPI data which almost confirmed a Dec Fed rate lift-off. Although the upside was capped after the industrial figures from the US disappointed markets. The US CPI rebounded 0.2% in October, matching forecast, and following an unrevised 0.2% drop in September. Industrial production in the US ticked down 0.2% m/m in Oct, missing expectations of a 0.1% rise. However, the upbeat sentiment on the Asian equities, taking the positive lead from the Wall Street overnight, keeps USD/JPY supported. The Japanese benchmark, the Nikkei extends the previous rally and trades nearly 1% higher in early trades. Meanwhile, the major remains on the back foot in absence of fresh economic news this session while attention shifts towards the US housing data due later today. Further, markets remain wary ahead of the BOJ rate decision due tomorrow. USD/JPY Technical levels to watch The prices trade firmer above 123 handle and now faces immediate resistance at 123.49/50 (Nov 17 High/ psychological levels). A break above the last, the major could test 123.61 (Nov 9 High). To the downside, the immediate support in sight at 123 (daily pivot/ 5 &10-DMA) below which 122.73 (Nov 11 Low) would be tested. A break below the last, 122.20 (Nov 16 Low) comes into the picture. For more information, read our latest forex news.