A sudden selling wave that gripped USD/JPY over the last hours found fresh buyers near 112.50 region and the major managed to recover some ground to now re-test 113 handle. USD/JPY trades below all major DMAs The major extends its recovery mode from fifteen-month lows struck at 112.55, as risk-off sentiment appear to ease a bit, with the black gold trimming losses amid thin trades as Japan and China are out on their respective holidays. At time of writing, USD/JPY trades at 113, recording a -0.32% loss on the day. The USD/JPY pair came under renewed selling earlier on the day and broke to the lowest level since Nov 2014 as the US dollar plunged to fresh four-month lows (95.54) against its major competitors after markets seem to have ignored Yellen’s optimistic remarks as uncertainty over Fed rate hike prospects this year continue to linger. Focus now remains on the second round of Fed Chair Yellen’s testimony due later today, while US jobless claims will be also closely watched. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 113.40/ 60 (1h 10-SMA/ daily high). A break above the last, the major could test 113.88/114.08 (daily pivot/ 1h 20-SMA). While to the downside, the immediate support is seen at 122.55/41 (Daily low/ Nov 2014 Low) and below that at 112 (round number/ Oct 2014 levels). For more information, read our latest forex news.