USD/JPY consolidates the upside around 104.60

A renewed risk-on rally in the USD/JPY pair faltered near the key resistance at 104.80 and the prices drifted thereon, now consolidating the bullish run below 5-DMA.

USD/JPY eyes 105 handle

USD/JPY’s rebound from multi-year lows reached last week, gained further traction at the Asia open this Monday, with the markets witnessing a 60-pips bullish gap as sentiment improved on easing Brexit fears, after the weekend’s latest Brexit polls showed that votes swayed in favour of the Remain camp.

The renewed optimism translated into higher Asian equities and oil prices, which further boosted the bids for USD/JPY. At the time of writing, the major jolts +0.44% higher at 104.64, while the Nikkei 225 rallies +2.33%.

In the day ahead, amid a lack of significant fundamental triggers for pair, focus will remain on the sentiment around oil and stocks amid Brexit news.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 104.84 (Jun 17 & daily high). A break above the last, the major could test 105 (round number). While to the downside, the immediate support is seen at 104 (round number) and below that at 103.56 (Multi-months low).