• USD/JPY pair rose on Tuesday to hit two week high as slew of warnings by Japan that it was prepared to step in to weaken the Japanese yen increased demand for US dollar.
   
• The pair rose to hit high at  109.28 levels initially in the earlier US session, but retreated slightly to trade at 109.11.
   
• Further decline is expected to be limited as the support level at 108.13 levels is set to hold the bears from falling further below, and bring a rebound towards higher levels, therefore it’s good to buy this pair on dips.
   
• Immediate support can be seen at 108.62, a break below this level will expose the pair downwards towards 108.13 levels.
   
• Major resistance can be seen at 109.74, a break above this level will open the door towards 110.00 levels.
  
  Resistance Levels
  
  R1: 109.11 (38.2 % Retracement Level)
  
  R2: 109.74 (23.6 % Retracement Level)
  
  R3: 110.00 (Psychological levels)
  
  Support Levels
  
  S1: 108.62 (50 % Retracement Level)
  
  S2: 108.13 (61.8% Retracement Level)
  
  S3: 107.20 (May 9th lows)