FXStreet (Mumbai) - The USD/JPY pair recovered 40 odd pips from the five-month low of 116.42 as investors wait to see if the European equities follow Asian markets lower. JPY trims gains, Stoxx 50 futures drop 1.8% The Japanese Yen trimmed gains even though the Stoxx 50 futures indicate the major European equity indices are likely to open at least 1.5% lower on the day. The safe haven Yen strengthened in Asia on account of the risk aversion in the equities. The drop in oil prices and the risk aversion in Asia means increased likelihood of a drop in the European markets. Hence, a technical recovery in the USD/JPY pair from the multi-month lows could be short-lived. Later in the day, the traders would also keep an eye on the US December CPI data. USD/JPY Technical Levels The spot currently trades around 116.80. The immediate resistance is seen at 117.45 (5-DMA + 10-DMA), above which the gains could be extended to previous session’s high of 118.11. On the other side, a break below the daily low of 116.42 would open doors for a drop to 116.08 (August 2015 low). For more information, read our latest forex news.