FXStreet (Mumbai) -A renewed bout of risk aversion hit markets over the last hours, with USD/JPY now breaching the 118 psychological support. USD/JPY failed near 5-DMA at 118.27 The USD/JPY pair trades -0.26% lower at fresh session lows of 117.98, having failed to resist 118 handle. The major ran through fresh sellers near 5-DMA on its recovery mode and dropped sharply to session lows as the sell-off in oil and stocks intensify, thus, boosting the demand for the safe-haven yen. Japan’s benchmark index, the Nikkei 225 now accelerates losses and tanks -2.42%, while the US oil drops -2.37% and Brent slides -0.90%. Looking ahead, flight to safety will continue to remain the key theme in a data-quiet European session ahead. While the NY session holds the release of the consumer confidence and flash services PMI data. It’s worth noting that the Fed commences its 2-day policy meeting later today. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118.39 (1h 20 & 50-SMA). A break above the last, the major could test 118.68/77 (daily R1/ Jan 8 High). While to the downside, the immediate support is located at 117.88 (20-DMA) below which 117.63 (1h 200-SMA) would be tested. For more information, read our latest forex news.