The bid tone around JPY strengthened further in early Europe, pushing the USD/JPY pair to a daily low of 112.05 amid negative action in the European stock futures. Rejected at 5-DMA The sell-off began after the pair failed to sustain above its 5-DMA at 112.98 levels. The sentiment turned cautious in Asia as the drop in the oil prices weighed over stocks, resulting in a rise in demand for Yen. The risk-off appears to have hit the European shores as the Euro Stoxx futures fell 0.90% in early Europe. Consequently, the pair extended losses to 112.05 before recovering slightly to 112.15 levels. Ahead in the day, the spot remains at the mercy of the oil price moves and the resulting action in the equities. USD/JPY Technical Levels The immediate resistance is seen at 112.30 (Feb 19 low), which if breached shall open doors for a re-test of the daily high around 5-DMA at 112.98. On the other hand, a break below 112.00 could see the spot extend the drop to 111.65 (Feb 12 low). For more information, read our latest forex news.