FXStreet (Mumbai) - The USD/JPY pair is seen oscillating in a 30-pips narrow above 117 handle in recent dealings, having closed the bearish opening gap and now remains capped by the 5-DMA at 117.40. USD/JPY awaits fresh incentives The USD/JPY pair trades 0.20% at 117.27, failing once again near 5-DMA. The major is currently consolidating its recovery from multi-month lows and manages to hold above 117 handle, divided between higher demand for risk currencies and lower domestic stocks. Nikkei now pares losses and trades -0.92% lower versus -1.75% previous. The recovery also remains intact as the yen continues to lose ground heading towards Europe, as the weak Japanese industrial output data and a slight deterioration in the economic conditions in Japan’s regions add to negative sentiment around the JPY. Nothing of note for major in the day ahead as the trading calendar remains relatively light, with the US markets closed for Martin Luther King Day. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 117.46/54 (10-DMA/ 1h 50-SMA). A break above the last, the major could test 117.69/84 (1h 100 & 200-SMA). While to the downside, the immediate support is located at 116.81/72 (daily S1 & low) below which 116.51 (Jan 15 Low) would be tested. For more information, read our latest forex news.