• USD/JPY inched higher on Tuesday as demand for riskier assets increased as the Federal Reserve's meeting kicks off.
   
• Investors waited on the conclusion of the Federal Reserve’s two-day meeting on Wednesday for any clues on when the U.S. central bank is next likely to raise interest rates.
   
• The Fed is expected to keep interest rates steady after hiking them in March, but investors were waiting to see if the central bank may indicate that a new increase is likely at its June meeting.
   
• The pair is set to reach 112.50 and later towards 113.00 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 112.32, a break above this level would take the pair towards next resistance level at 112.88.
   
• To the downside immediate support can be seen at 111.81, a break below this level will open the gates towards next level at 111.45.
  
  Resistance Levels
  
  R1: 112.32 (38.2% Retracement level)
  
  R2: 112.88 (23.6% Retracement level)
  
  R3: 113.00 (Psychological levels)
  
  Support Levels
  
  S1: 111.81 (50 % Retracement level)
  
  S2: 111.45 (61.8 % Retracement level)
  
  S3: 111.02 (April 27th lows)