FXStreet (Mumbai) - The US dollar trimmed gains and eased-off highs versus its Japanese counterpart in the European session, pushing USD/JPY slightly away from 118 handle. USD/JPY consolidates above hourly 200-SMA at 117.68 The USD/JPY pair trades 0.43% higher at 117.85, having posted session highs at 118 levels pre-European open. The bid tone surrounding the USD/JPY pair eased a bit over the last hours, mirroring the moves in the European markets, as the region’s indices moved-off highs. However, the dollar-yen pair remains supported on the back of solid recovery in oil and copper prices as investors speculate over more stimulus from China after the slower growth in the Chinese Q4 GDP. While the underlying risk-on theme in markets continues to smash the safe-haven bids for the yen and hence, keeps USD/JPY near 118 handle. Attention now shifts towards Wednesday’s US CPI report in absence of fresh dataflow from the US later today. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118/118.03 (round number/ Jan 11 High). A break above the last, the major could test 118.28 (Jan 14 & 15 High). While to the downside, the immediate support is located at 117.30/24 (1h 50-SMA/ daily low) below which 116.81 (daily S1) would be tested. For more information, read our latest forex news.