USD/JPY rises to fresh session high of 112.60 as Chinese stocks pick up a bid

• Chinese stocks are reporting 1.5 percent gains on the day.
• The S&P 500 futures have recovered losses likely due to risk-on in Shanghai Composite.
• The JPY is being offered across the board.

The uptick in the Chinese stocks is weighing over the anti-risk Japanese yen.

The 1.5 percent rise in the Shanghai Composite is helping stabilize the risk sentiment in the financial markets. For instance, the S&P 500 index, which was down 0.25 percent an hour ago, is now trading flat-to-positive.

As a result, the JPY is losing altitude and the commodity currencies like the AUD, NZD, and CAD are on the offensive. At press time, the USD/JPY is trading at 112.57, having clocked a session high of 112.60 a few minutes before press time.

Looking forward, the USD/JPY may rise further toward key resistance at 112.89 (Monday's low) if the European equities get off to a positive start.

USD/JPY Technical Levels

Resistance: 112.89 (Oct. 22 high), 113.18 (July high), 114.00 (psychological hurdle)

Support: 112.32 (session low), 112.01 (support of trendline from March lows), 111.62 (Oct. 15 low)