The yen extends gains against its American counterpart in early Europe, knocking-off USD/JPY to fresh session lows near 112.60 region. USD/JPY hits low below 5-DMA The dollar-yen pair receives double blow heading into Europe as the persisting US dollar weakness continues to weigh on one hand, while a mild deterioration of risk conditions on receding gains on the Japanese stocks, also weighs on the major. Meanwhile the USD index drops further to 97.15, down -0.30%, while Japan’s Nikkei now rises 0.50% versus +1.20% seen earlier. Calendar-wise, we had the inflation figures from Japan; with the national core CPI falling 0.7% in January to be flat y/y, after recording a 0.1% increase in December. Tokyo's CPI dropped at a steady rate of 0.1% y/y in February, coming in weaker than the forecast of an unchanged price level. Markets continue to monitor the sentiment around the stock and oil markets, while a string of US economic releases due later today, will provide fresh direction on the USD moves. The US GDP print will hog the limelight in the NY session. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 113.07 (1h 200-SMA). A break above the last, the major could test 113.22/39 (daily & Feb 22 High). While to the downside, the immediate support is seen at 112.39 (1h 100-SMA) and below that at 112 (round number). For more information, read our latest forex news.