FXStreet (Mumbai) - The USD/JPY ran into fresh offers at 118.17, pushing the pair back below 118.00 levels despite the uptick in the treasury yields. JPY recovers as European stocks drop The demand for the JPY rose after the stock markets in Europe dropped in early trading. The European index futures have trimmed gains as well, indicating the risk aversion in Asia has hit the European shores. As of writing, the pan-European blue chip Euro Stoxx 50 index was down 1.6%. Meanwhile, the uptick in the US treasury yields failed to keep the USD/JPY pair above 118.00 levels. As of writing, the US 10-yr treasury yield was up more than two basis points. USD/JPY Technical Levels The pair trades at 117.90 now. The immediate resistance is seen at 118.00, above which the pair could test 118.19 (hourly 200-MA) levels. A break higher would expose 118.38 (Jan 13 high). On the other hand, a break below 117.87 (hourly 50-MA) could send the pair lower to 117.29 (daily low). For more information, read our latest forex news.