FXStreet (Mumbai) - USD/JPY met fresh supply just ahead of hourly 200-SMA at 123.02 and dropped sharply to fresh session lows near 122.80 region as risk-off moods persist, despite better than expected Chinese CPI data. USD/JPY eyes Tuesday’s low Currently, the USD/JPY pair trades -0.11% lower at fresh session lows of 122.79, failing to resist 20-DMA support at 122.98. The major stalled its recovery mode and fell back into the negative territory on the back of rising demand for safe-havens such as yen amid renewed bout of risk-aversion witnessed across Asia. Markets remained wary, despite upbeat Chinese CPI data, as the uptick in price pressures is viewed temporary in nature due to seasonal factors. Hence, renewed sell-off is seen on the Asian equities amid deteriorating sentiment on persisting China slowdown fears. Nikkei tanks over 1%, Australia’s S&P/ASX erases gains and turns negative while China stocks remain in the red. Looking ahead, risk-off sentiment is likely to dominate in today’s data-dry trading session while performance on the commodities space will be closely monitored for fresh cues. USD/JPY Technical levels to watch The prices drop to lows and find the immediate support placed at 122.69 (Dec 8 low) below which 122.44 (Dec 4 low) would be tested. To the top-side, the immediate resistance is now placed at hourly 200-SMA (123.02). A break above the last, the major could test 123.42/47 (Dec 8 & 7 high). For more information, read our latest forex news.