FXStreet (Mumbai) - The overnight recovery in the USD/JPY pair loses steam near the mid-point of 117 handle, as the bearish bias seen in China’s stocks weighs on the persisting risk-on moods. USD/JPY sees almost 120-pips vertical rise The USD/JPY pair trades 0.36% higher at 117.36, having posted fresh session highs at 117.47 levels over the last hours. The USD bulls manages to regain control this session, after having battered to the lowest levels since Jan 2014 on Wednesday, as risk-on sentiment returned to markets on the back of a recovery in oil prices. The sentiment on the Asian indices also got a lift from the oil relief-rally, with the Nikkei bouncing +1.44% and Australia’s ASX 200 up +1.28%. However, the major seems to consolidate the overnight gains over the last hours as the negative performance of the Chinese stocks on the back of a much stronger yuan fix, keeps a check on the prices. Meanwhile, the dollar-yen pair shrugged-off softer US CPI figures, with the focus now remaining on the oil prices action for the day ahead, as the macro calendar remains absolutely empty for the pair. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118/118.03 (round number/ Jan 11 High). A break above the last, the major could test 118.28 (Jan 14 & 15 High). While to the downside, the immediate support is located at 117 (psychological levels) below which 116.68/55 (Jan 11 & 18 Low) would be tested. For more information, read our latest forex news.