The USD/JPY pair caught a sudden bid-wave after it tested yesterday’s low near 114.25 region and swung back higher above 115 handle, before running into fresh offers and dragging the pair back below the last. USD/JPY: Yen in demand amid falling equities The major picked-up renewed strength near multi month lows around 114.20 and staged a solid pullback last minutes, taking the pair to 115.10 levels. However, the pair failed to resist 115 handle once again and reverted to the 114 handle as risk-aversion continues to dominate markets. At time of writing, USD/JPY trades at 114.64, recording a -0.41% loss on the day. The sudden freak spike could be attributed to some invisible hand by the BOJ as the yen continues to appreciate and appears undesirable for the BOJ policymakers as it will keep the BOJ away from achieving their 2% price target. The recent headlines flowing from the Japanese officials also noted that they are monitoring yen moves. Looking ahead, all eyes remain on the Fed Chair Yellen’s testimony due later today for fresh insights on the Fed’s interest rates outlook. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 115.03/ 115.22 (daily pivot & high). A break above the last, the major could test 115.62/95 (1h 50-SMA/ 5-DMA). While to the downside, the immediate support is seen at 114.26/24 (Daily & Feb 9 High) and below that at 114/ 113.80 (round number/ Nov 2014 levels). For more information, read our latest forex news.