FXStreet (Mumbai) - With the risk-sentiment improving gradually, the USD/JPY pair regained ground and rallied to retest 119 barrier, before retreating slightly from session tops. USD/JPY finds support near 5-DMA at 118.54 The USD/JPY pair trades 0.13% higher at 118.84, quickly retracing from session highs scored at 118.93 last hours. A renewed rally seen in the major once again lost steam few pips short of 119 handle and the prices eased-off a bit as the appetite for risk appears dented by wavering China stocks. While lower oil prices also keep a lid on the prices. The USD/JPY pair keeps the bid tone intact post-Fed decision as the latest downbeat Japan’s retail sales data weigh on the yen. While markets eagerly await the BOJ event due tomorrow for more hints on whether Kuroda and his team will roll out additional stimulus in wake of the recent global markets turbulence. On Wednesday, the FOMC statement offered no new surprises as the Fed kept the policy unchanged and as expected the central bank took notice of the ongoing global headwinds. Hence, the major found fresh bids following the in-line with expectations Fed outcome and broke above 119 barrier, the highest levels in three weeks. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 119/119.07 (round number/Jan 27 High). A break above the last, the major could test 119.17/59 (Jan 6 High/ daily R2). While to the downside, the immediate support is located at 118.41/ 39 (1h 50 & 100-SMA) below which 118.11/118 (10-DMA) would be tested. For more information, read our latest forex news.