FXStreet - The overnight recovery in the USD/JPY pair faltered near 118.25 levels and the major dropped sharply to session lows, before recovering some ground to now trade just shy of 118 handle. USD/JPY back below 118 handle The major struggles hard to regain lost footing and defends the bids over the last hours as the falling Japanese stocks continue to weigh the prices, while the rallying oil prices keep the recovery mode alive. At the time of writing, the major trades dead flat at 117.88, having failed to resist 118 handle. The USD/JPY pair runs through fresh offer as the US dollar’s recovery against its major competitors appears to fizzle. Meanwhile, markets continue to track the sentiment on the global equities and on the oil markets ahead of the US datasets due for release later today. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118.39/42 (1h 20-SMA/ daily pivot). A break above the last, the major could test 119 (round number). While to the downside, the immediate support is seen at 117.66/52 (daily low/ Jan 22 Low) and below that at 117.03 (Feb 3 Low). For more information, read our latest forex news.