FXStreet (Mumbai) - Having booked steep losses in the Asian session, the USD/JPY pair looks to stabilize near 118 handle, while European stocks dive at open. USD/JPY clings to 118.00 Currently, the USD/JPY pair trades -0.34% lower at 118.08, trying hard to extend beyond 118.15-20 zone. The major extends its recovery mode on the 118 handle, largely indifferent to the negative open on the European bourses amid global stocks sell-off, as markets appear to have priced-in such a move. The German DAX opened 2.18% lower, while the UK’s FTSE fell -1.70. However, the upside remains capped on the back prevalent risk-off market profile, which continues to keep the yen underpinned. Meanwhile, the major will continue to track the broader markets sentiment and also the USD recovery in the day ahead. On the data front, weekly jobless claims remain the only economic news to be published from the US. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118.50 (confluence of hourly 5, 10, 20 MAs). A break above the last, the major could test 118.75 (daily high). While to the downside, the immediate support is located at 117.72/68 (daily S2 & low) below which 117.22 (daily S3/ Aug levels) would be tested. For more information, read our latest forex news.