FXStreet (Mumbai) - The overnight recovery in the USD/JPY pair once again failed near 118 handle and the major dropped to new session lows towards the mid-point of 117 handle amid falling Japanese stocks. USD/JPY slips back to 5-DMA at 117.49 Currently, the USD/JPY pair trades -0.20% lower at fresh session lows of 117.51, failing to resist 118 handle on yet another occasion. The USD/JPY pair surrendered nearly 50 pips and fell back in the negative territory after the demand for the safe-haven yen re-emerged after the Japanese stocks reversed the initial bounce and dived deeper in the red, catching up with the Chinese crisis after yesterday’s holiday. Moreover, rest of Asia, including China stocks have turned lower refuelling risk-off trades amid a calm Asia. Meanwhile, the Nikkei drops over -2%, while the Shanghai Composite index loses -0.20% and the S&P/ASX index falls -0.23% so far this session. Furthermore, the US dollar trades mixed in the markets, falling as much as 0.15% against the EUR, JPY and CHF (safe-havens), while remaining firmer against the higher yielding currencies such as the Antipodes and the pound. Looking ahead, nothing of note for the JPY in terms of macro news except for the BOJ Governor Kuroda’s speech, which may provide fresh cues on the major. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 118.02/03 (Jan 11 & Today’s High). A break above the last, the major could test 118.51 (10-DMA). While to the downside, the immediate support is located at 117 (round number) below which 116.70 (Jan 11 low) would be tested. For more information, read our latest forex news.