• USD/JPY declined on Wednesday as investors took profits after dollar reached 3 weeks high against Japanese yen in the early US session after U.S. data showed robust growth in retail sales and consumer prices in January.
   
• U.S. retail sales rose more than expected in January, while other data showed consumer prices recorded their biggest increase in nearly four years last month and manufacturing output steadily rising.
   
• Retail sales increased 0.4 percent last month. December's retail sales were revised up to show a 1.0 percent rise instead of the previously reported 0.6 percent advance.
   
• Consumer Price Index jumped 0.6 percent last month, the largest increase since February 2013, after gaining 0.3 percent in December.
   
• The pair is set to reach 114.70 and later towards 115.00 in the short term as the US dollar is set to strengthen against its Japanese counterpart in the short term. Therefore it’s good to buy this pair on dips.
   
• To the upside, the strong resistance can be seen at 115.06, a break above this level would take the pair towards next resistance level at 115.38.
   
• To the downside immediate support can be seen at 113.81, a break below this level will open the gates towards next level at 113.24.
  
  Resistance Levels
  
  R1: 114.36 (38.2% Retracement level)
  
  R2: 115.06 (23.6% Retracement level)
  
  R3: 115.38 (Jan 27th high)
  
  Support Levels
  
  S1: 113.81 (50 % Retracement level)
  
  S2: 113.24 (61.8 % Retracement level)
  
  S3: 112.84 (Feb 12th lows)