FXStreet (Mumbai) - The safe haven demand for the JPY dropped amid relative calm in the markets, helping the USD/JPY pair recover from the daily lows to trade above 118.30 (23.6% of May 2015 high-Jan 2016 low). Focus on Oil ahead of BOJ The risk sentiment remains almost entirely dependent on the action in the oil prices. Hence, the safe haven demand for the Yen too is at the mercy of the oil prices. At the same time, there is a growing chatter about the possibility of more BOJ stimulus later this week. This is likely to keep a lid on the gains in the Japanese Yen. Ahead in the day, the US Dallas Fed manufacturing index could influence the pair apart from the oil prices and stock markets. USD/JPY Technical Levels The spot currently trades around 118.55. The immediate resistance is seen at 118.80 (Friday’s high), above which the pair needs to take out 119.00 in order to target 119.75 (38.2% of May 2015 high-Jan 2016 low). On the other hand, a break below 118.30 (23.6% of May 2015 high-Jan 2016 low) could open doors for a drop to 118.00, under which the pair could test bids at 115.97 (last week’s low). For more information, read our latest forex news.