FXStreet (Mumbai) - The fresh selling interest seen in the European equities and oil prices revived the bid tone in the Japanese yen, sending USD/JPY back towards midpoint of 118 handle. USD/JPY eyes daily lows Currently, the USD/JPY pair trades -0.42% lower at 118.54, stalling its recovery near 118.80 region. The major failed to hold ground near 118.80 levels and turned lower as the yen bulls recovered lost momentum amid ongoing weakness in the global stocks and renewed sell-off seen in the oil prices. Brent oil struck fresh 11-year lows near 35.50 levels as rising oversupply concerns. Moreover, the economic developments around China continue to trigger market unrest, which benefit the safe-haven bids for the yen and thus, keep USD/JPY heavily undermined. Later today, markets expect a slew of US macro data and the FOMC minutes to provide fresh cues on the US dollar, which may have significant impact on the major. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 119 (round number). A break above the last, the major could test 119.58 (5-DMA). While to the downside, the immediate support is located at 118.37 (daily low) below which 118.04 (Oct 15 Low) would be tested. For more information, read our latest forex news.