FXStreet (Mumbai) - The bid tone on the JPY failed to strengthen despite the drop in European equities, keeping the USD/JPY above 118.30 (23.6% of May 2015 high-Jan 2016 low). Investors await FOMC rate decision The Fed officials, who have refrained from making dovish comments amid financial market turmoil, and the market, which believes rate hike would happen only in June, stand divided ahead of the rate decision. Hence, investors remain cautious. The downside in the pair is also restricted due to chatter that BOJ might ease on Friday. As of now the pair is trading largely unchanged around 118.40 levels. USD/JPY Technical Levels The immediate resistance is seen at 118.88 (Jan 22 high), above which the spot could target the major hurdle at 119.75 (38.2% of May 2015 high-Jan 2016 low). On the other hand, a break below 118.30 (23.6% of May 2015 high-Jan 2016 low) could see the pair drop to 117.20 (Jan 8 low). For more information, read our latest forex news.