FXStreet (Mumbai) - The offered tone around JPY gathered pace, pushing the USD/JPY higher to 118.49 as the oil prices rallied on Iraqi official’s comments and ensured stock markets in Europe recovered losses. Trades above 23.6% Fibo level The spot now trades above 118.30 (23.6% of May 2015 high-Jan 2016 low). Oil prices strengthened after Iraqi official said his country reduce output if other members agree to do so. This was enough reason for the oversold oil to turn higher. The European stocks also followed suit and recovered losses to trade largely unchanged on the day. Consequently, the safe haven demand for the Yen dropped. The pair is now at the mercy of action on the Wall Street and the US services and composite PMI data. USD/JPY Technical Levels The immediate resistance is seen at 118.88 (Jan 22 high), above which the prices could rise to 119.75 (38.2% of May 2015 high-Jan 2016 low). On the other hand, a break below 117.65 (daily low) would expose 117.20 (Jan 8 low). For more information, read our latest forex news.