The USD/JPY pair failed to resist 118 handle once again and dropped sharply post-European session as broad based US dollar sell-off resumed. USD/JPY recovers from 117.34 lows The major saw heavy selling over the last hours and fell as low as 117.34 after the greenback fell further into losses against its major peers. At the time of writing, the major trades -0.19% at 117.67 levels. USD/JPY was unperturbed by the BOJ’s Kuroda’s and Iwata’s dovish comments delivered earlier today, and also paid little heed to the risk-on trades on the European equities, as the ongoing weakness in the US dollar acted as the main catalyst for moves in the major for today. The USD index drops to fresh four-month lows of 96.76, down -0.40% on the day. Focus now remains on the US economic news due later in the NY session, which is likely to exacerbate the pain in the buck. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118.39/42 (1h 20-SMA/ daily pivot). A break above the last, the major could test 119 (round number). While to the downside, the immediate support is seen at 117.03 (Feb 3 Low) and below that at 116.78/68 (Daily S1/ Jan 11 Low). For more information, read our latest forex news.