• USD/JPY declined sharply on Thursday as dollar weakened across the board after Wednesday's less hawkish than expected Federal Reserve comments.
   
• The Fed lifted interest rates by 25 basis points on Wednesday, a move that markets had priced in. However, the bank did not flag any plan to accelerate the pace of tightening.
   
• Fed Chair Janet Yellen said in a press conference following the decision that risks to the global economy were more balanced, but that she expected policy to remain accommodative for some time.
   
• The pair is set to reach 112.71 and later towards 112.50 in the short term as the US dollar is set to weaken further against its Japanese counterpart in the short term. Therefore it’s good to sell this pair on rallies.
   
• To the upside, the strong resistance can be seen at 114.30, a break above this level would take the pair towards next resistance level at 115.00.
   
• To the downside immediate support can be seen at 112.71, a break below this level will open the gates towards next level at 112.22.​
  
  Resistance Levels
  
  R1: 113.51 (50% Retracement level)
  
  R2: 114.30 (61.8% Retracement level)
  
  R3: 115.00 (Psychological level)​
  
  Support Levels
  
  S1: 112.71 (38.2% Retracement level)
  
  S2: 112.22 (Feb 3rd lows)
  
  S3: 111.68 (23.6% Retracement level)