FXStreet (Mumbai) - The USD/JPY pair picked-up pace over the last hours and now reverts to 118 handle, quickly recovering from a dip to 117.55 levels. USD/JPY strives to regain 118 handle The USD/JPY pair trades 0.10% higher at 117.85, having revisited daily highs reached at 117.95 levels. The major found renewed bids just above the hourly 200-SMA at 117.49 and swung back on the bids in another attempt to conquer 118 handle. The ongoing recovery from close to 116 handle found fresh legs after the Japanese stocks managed to pull out from the bear market territory and rebounded higher this session, leading the rally in other Asian indices. The Nikkei bounces +3.60%, while ASX 200 jumps over 1%, while the Chinese stocks are seen wavering between gains and losses. However, its seen over the last hours that the attempt to regain 118 handle have been sold-off as the overnight recovery in the oil prices seem to have lost steam and hence, markets remain wary to place fresh bets on the risk currency US dollar. Data-wise, the US manufacturing gauge and existing home sales data will be watched for fresh cues on the pair. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118/118.03 (round number/ Jan 11 High). A break above the last, the major could test 118.28 (Jan 14 & 15 High). While to the downside, the immediate support is located at 117.49/47 (1h 200-SMA/ daily low) below which 117 (psychological levels) would be tested. For more information, read our latest forex news.