FXStreet (Mumbai) - The USD/JPY pair keeps the red in the late-Asian/early European trades, although recovers from a brief dip to 118 handle. USD/JPY offered support near hourly 100-SMA then at 118.06 The USD/JPY pair trades -0.07% lower at 118.34, retreating from session lows hit at 118.04 earlier in Asia. The risk-off sentiment appear to cool-off a bit, tracking the minor-recovery in oil prices and has offered support to the USD bulls, as the demand for risk assets improve. Hence, the USD/JPY pair is seen recovering its entire slide and is on its way to challenge daily highs posted at 118.50 levels in the opening trades. More so, the downside remains restricted so long as the major holds above 118 handle. Looking ahead, the upcoming Fed decision later today and Friday’s BOJ’s policy outcome will be closely watched for more cues on the major, ahead of the advance GDP numbers from the US due on the final trading day of the week. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118.77/79 (Jan 8 High/ daily R1). A break above the last, the major could test 119/119.20 (round number/ daily R2). While to the downside, the immediate support is located at 117.84 (20-DMA) below which 117.69 (1h 200-SMA) would be tested. For more information, read our latest forex news.