USD/JPY has steadied around 112.50 on Wednesday after hitting fresh weekly lows during the European session as financial markets exhibit an overall cautious tone, leaning to risk-on. USD/JPY bottomed out at 112.22 but managed to trim intraday losses and climbed to the 112.55 area in recent dealings. At time of writing, the pair is trading at 112.50, a few pips below its opening price. Despite better risk sentiment, USD/JPY remains on the defensive, falling for a third day in a row while investors await the BoJ and the Fed decision next week. USD/JPY levels to watch As for technical levels, next supports are seen at 112.15 (Mar 1 low) and 111.88 (Feb 25 low) ahead of 110.97 (2016 low, Feb 11). On the other hand, resistances could be found at 113.50 (Mar 8 high), 114.54 (Mar 2 high) and 115.05 (38.2& Fibo retracement of 121.68-110.97). For more information, read our latest forex news.