FXStreet (Mumbai) - A sudden bid wave caught the USD/JPY pair last minutes, sending the prices back towards 5-DMA at 118.30 as the Asian indices are seen paring losses. USD/JPY finds good support just ahead of 118 handle The USD/JPY pair trades modestly at 118.24, quickly retreating from fresh session lows struck at 118.02 in recent dealings. The major recovers most losses and looks to retest daily highs above 118.30 levels after the bulls managed to resist 118 handle amid persisting risk-aversion across the fx board. Moreover, the renewed strength in the USD/JPY pair can be also attributed to the easing risk-off moods as the Asian equities are seen retracing losses alongside oil. Japan’s benchmark index, the Nikkei 225 now drops -1.85% versus over a 2% fall previously. However, the recovery looks fragile as oil prices look vulnerable and hence, the safe-haven yen will continue to remain bid in the day ahead. Data-wise, the consumer confidence and flash services PMI data from the US will be reported in the NY session, while the Fed begins its 2-day policy meeting later today with the decision to be announced on Wednesday. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118.39 (1h 20 & 50-SMA). A break above the last, the major could test 118.68/77 (daily R1/ Jan 8 High). While to the downside, the immediate support is located at 117.89 (20-DMA) below which 117.63 (1h 200-SMA) would be tested. For more information, read our latest forex news.