USD/JPY gathering pace for further upside, 105 eyed?

USD/JPY is seen consolidating the one big figure recovery on the 104 handle and now appears to catch fresh bid as the European stocks accelerate gains amid receding Brexit fears.

USD/JPY revisits daily highs

The bid tone behind the USD/JPY pair remains intact in the mid-European session as the sentiment around the European equity markets keeps improving as markets almost believe that a Brexit is almost off the table, given the recent opinion polls on the EU referendum pointing to Bremain leading. At the time of writing, USD/JPY jumps +0.54% testing fresh session highs posted at 104.59 earlier on the day. 104.27.

Looking ahead, investors now await today's semi-annual testimony from Fed Chair Janet Yellen before the Senate Banking Committee in Washington, which will most likely bring elevated volatility as she might reiterate the current dovish stance. Hence, further upside looks limited as the greenback may take a hit on Yellen’s dovish stance.

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).