The bid tone around JPY strengthened on drop in oil and Chinese equity markets, pushing the USD/JPY pair back to 112.10 levels in early Europe. Risk-off making a comeback in Europe Both oil benchmarks are down at least 0.50%. Meanwhile, the Chinese equity markets are heading into the close with 6% loss. Consequently, the investors are worried the risk-off trading is making a comeback in Europe. Hence, the USD/JPY pair fell back to 112.10 levels. The spot clocked a high of 112.62 levels in Asia before turning lower. USD/JPY Technical Levels The immediate support is seen at 111.98 (hourly 50-MA), under which the spot could drop to 111.77 (Feb 23 low). On the other hand, a break above 112.35 could see the spot re-test the daily high of 112.62. For more information, read our latest forex news.