FXStreet (Mumbai) - Risk-off market profile made a come towards the late-Asian trades, knocking-off USD/JPY to 118.50 region before recovering losses to trade above hourly 20-SMA at 118.65. USD/JPY clinging to 5-DMA support at 118.50 The USD/JPY pair trades modestly flat at 118.70, retreating from a brief dip to 118.56 over the last hours. The yen bulls are struggling hard to retain control, despite persistent risk-off environment, as the latest downbeat retail sales data reinforced bets that the BOJ could bring in additional stimulus tomorrow in a bid to spur growth. The USD/JPY pair erased losses and jumped back on the bid as the monetary policy divergence between the Fed and BOJ, continues to favour the U currency. On Wednesday, the Fed kept the rates on hold and remained on track for further rate hikes this year, while noting that it would assess the implications of the ongoing global market turbulence. Meanwhile, markets prefer to hold the US dollar ahead of a fresh batch of key US fundamentals, with the US durables goods orders data expected to provide fresh insights on the US growth prospects. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 119/119.07 (round number/Jan 27 High). A break above the last, the major could test 119.17/59 (Jan 6 High/ daily R2). While to the downside, the immediate support is located at 118.42/ 39 (1h 50 & 100-SMA) below which 118.08/118 (10-DMA) would be tested. For more information, read our latest forex news.