FXStreet (Mumbai) - The yen continues to keep the bids against its American counterpart in a risk-off Asia, with USD/JPY retreating slightly after having tested 118 levels last minutes. USD/JPY sold-off above 5-DMA at 118.28 The USD/JPY pair trades -0.16% lower at 118.10, with further downside likely to open up below 118 handle. A renewed bout of selling in the oil prices overnight triggered fresh risk-aversion wave across the financial markets and led the sell-off in the US and Asian equities, as markets sought safe-havens such as the yen amid market unrest. Japan’s Nikkei drops -2% while the US oil also falls nearly -2% below $ 30 mark. Moreover, markets remain wary over the BOJ easing prospects heading into Friday’s policy decision while Wednesday’s FOMC decision also keeps investors concerned whether the Fed will pursue four rate hikes this year as initially floated by the Fed. Therefore, the yen tends to benefit amid a cautious environment and pushes UD/JPY lower. Amid a light economic calendar ahead, the major will continue to dance to the tune of the oil prices and on the broader market sentiment. While consumer confidence and flash services PMI data from the US will be eyed for fresh cues. 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 117.89 (20-DMA) below which 117.63 (1h 200-SMA) would be tested. For more information, read our latest forex news.