FXStreet (Mumbai) - Having failed once again to sustain above 118 handle, the USD/JPY pair came under fresh selling pressure in Asia as the risk-off returned to markets on renewed sell-off in oil prices. USD/JPY meets fresh supply above hourly 200-SMA at 117.66 The USD/JPY pair trades -0.36% higher at 117.23, hovering close to session lows struck at 117.16 in last hours. The Japanese yen fought back control against its American counterpart in the Asian session this Wednesday, after the resumption of the dominant bear trend in oil prices combined with global growth outlook cut by IMF re-ignited risk-off moods in the markets and boosted the safe-havens bids for the yen. The US oil prices hit fresh 12-yr lows this morning below $ 28 mark. As a result, risk assets such as the region’s equities were also heavily sold-off exacerbating the risk-off environment and further pushing USD/JPY lower. The Nikkei drops -2.15%, Australia’s ASX 200 declines -0.65%, while China’s Shanghai Composite loses -0.11%. Looking ahead, the US CPI report is expected emerge the main market mover for the major in the day ahead, In the meantime, stock and oil will continue to dominate the market sentiment and hence, further USD/JPY moves. 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 (psychological levels) below which 116.68/55 (Jan 11 & 18 Low) would be tested. For more information, read our latest forex news.