The Japanese yen continues to smash its US counterpart as we head into mid-Asia, knocking-off USD/JPY to fresh yearly lows near the mid-point of 114 handle. USD/JPY falling like a knife in tandem with Nikkei The major is seen accelerating to the downside, with the bears relentless as the Japanese stocks extend the selling spiral and further fuel risk-off market profile. At the time of writing, the USD/JPY pair slumps over 1% to 114.66, retreating slightly from the lowest levels since November 2014 reached at 114.45 last minutes. Meanwhile, Japan’s Nikkei sinks nearly -5% led by sharp declines in banking and financial stocks. The demand for the safe-haven yen continued to rise as the sentiment soured on the back of the recent oil price volatility and rising global growth concerns. Moreover, growing expectations that Fed Chair Yellen’s may hint at delay in rate hikes in her testimony at Capitol Hill on Wednesday in wake of the recent turmoil, also weighed heavily on the sentiment around the US dollar. Meanwhile, the sentiment on the global equities will continue to dominate markets amid a lack of relevant macro data in the day ahead. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 115.34/45 (1h 5 & 10-SMA). A break above the last, the major could test 116/116.12 (round number/ daily pivot). While to the downside, the immediate support is seen at 114 (psychological levels) and below that at 113.76/75 (daily S2/ Nov 2014 levels). For more information, read our latest forex news.