FXStreet (Mumbai) - The yen bulls breathe a sigh of relief after heavy battering seen in the US last session, as USD/JPY trades near the lower end of Wednesday’s trading range while the Japanese traders hit their desks. USD/JPY clinging to 5-DMA support Currently, the USD/JPY pair trades almost unchanged at 123.23, attempting recovery from NY lows struck at 123.11 – few pips above 5-DMA (123.06). With the negative opening on the Nikkei and Australia’s S&P/ASX losing 0.76% at 5,218, risk-off sentiment appears to dominate this session and therefore, offers some respite to the Japanese currency. On Wednesday, the major spiked to fresh two-week highs at 123.67 in a knee-jerk reaction to Fed Chair Yellen’s comments. The US dollar jumped to more than twelve year highs against its major peers after Yellen’s upbeat remarks on the US economic outlook and maintaining that a Fed rate rise is on the cards just few weeks away. While impressive US ADP numbers (217k vs. 191k exp.) also added to the greenback strength. However, the spike was quickly reversed amid losses in the US stocks. Looking ahead, the major will continue to track the sentiment on the Asian stocks in the session ahead amid lack of fresh economic news for the JPY. While the focus remains on China services PMI and the ECB due later today. USD/JPY Technical levels to watch The prices remain slightly bid and find the immediate resistance at 123.36 (Nov 30 High). A break above the last, the major could test 123.64 (Nov 19 High). While to the downside, the immediate support is placed at 123.06 (5-DMA) below which 122.83 (1h 200-SMA) would be tested. For more information, read our latest forex news.