FXStreet (Mumbai) - The sharp fall in the Shanghai Composite coupled with a drop in oil prices triggered a flight to safety and pushed the USD/JPY pair to a low of 117.77 levels in early Europe. Hovers around 5-DMA The spot is now trading around its 5-DMA located at 117.83. The risk-off in China and other Asian equities appear to have hit the European shores as the Euro Stoxx 50 futures are down 0.80% in early trading. Consequently, the bid tone around the safe haven JPY is gathering pace. The spot remains at the mercy of the overall market sentiment. Later in the day, traders would also keep an eye on the US preliminary Markit services and composite PMI readings. USD/JPY Technical Levels The immediate support is seen at 117.70 (10-DMA)-117.63 (hourly 200-MA), under which the spot could drop to 117.20 (Jan 8 low). A break lower would expose 116.69 (Jan 11 low). On the other hand, a break above 118.11 (Jan 19 high) would expose 118.31 (23.6% of May 2015 high-Jan 2016 low), which if taken out shall see the pair test 118.88 (Jan 22 high). For more information, read our latest forex news.