USD/JPY bulls regain control, now eyeing 110.00 mark

The USD/JPY pair extended its rebound from early Asian session sub-109.00 low level and has now moved closer to a three-week high level of 109.65.

On Tuesday, the pair touched a three-week high level on the back of upbeat US CPI, industrial production and mixed housing data. On Wednesday, the US Dollar bulls fought back early Asian session bid for the safe-haven Japanese currency as investors now gear up for the very important Fed meeting minutes that would determine the near-term fate for the greenback.

At the time of writing, the USD/JPY pair is trading at 109.50 and could gather momentum if manages to clear Tuesday's high of 109.65.

Technical levels to watch

On the immediate upside, 50-day SMA near 110.00-110.20 psychological mark is likely to pose a strong risk to the pair's near-term recovery trend. A clear break through this strong resistance would pave way for extension of the pair's near-term upward trajectory towards its next major resistance near 111.00 round figure mark.

On the flip side, a follow through weakness below 109.00 handle might continue to find strong support near 108.50 region, which now seems to have emerged as immediate strong support. Only a decisive weakness back below 108.50 would negate the near-term bullish bias and turn the pair vulnerable to further downside in the near-term.