FXStreet (Mumbai) - The bid tone around the JPY weakened somewhat as oil recovered off lows, allowing the USD/JPY to move back above 118.00 levels. JPY tracks oil The safe haven JPY is influenced by primarily by the action in oil prices, since the risk sentiment is largely influence d by oil. Brent prices recovered from the low of USD 29.25, helping the stocks trim loses. Hence, the USD/JPY pair also trimmed losses; but still trades 0.13% lower on the day around 118.10 levels. Meanwhile, chatter of more BOJ easing ahead of Friday’s BOJ rate decision is also keeping the gains in the JPY capped. Ahead in the day, the spot could continue to track oil prices. US services PMI data may receive little attention if the Wall Street stays risk averse. USD/JPY Technical Levels The immediate resistance is seen at 118.30 (23.6% of May 2015 high-Jan 2016 low), above which the prices could rise to 118.88 (Jan 22 high). On the other hand, a break below 117.65 (daily low) would expose 117.20 (Jan 8 low). For more information, read our latest forex news.