• USD/JPY declined slightly on Wednesday as U.S. President Trump's abrupt firing of FBI chief James Comey increased demand for safe-haven yen, though gains were capped by expectations of further U.S. interest rate increases.
   
• Rekindled fears that North Korea could be gearing up for another weapons test also increased the demand for yen, which had sunk to an eight-week low against the dollar the previous day as investors' appetite for riskier currencies increased on the back of a weekend French election result that eased euro break-up fears.
   
• However, further downside for this pair is expected to be limited as strong support at 1.2388 is likely to hold the bears from falling further below.
   
• To the upside, immediate resistance can be seen at 114.12, a break above this level would take the pair towards next resistance level at 114.63.
   
• To the downside, strong support can be seen at 113.24, a break below this level will open the gates towards next level at 112.91.
  
  Resistance Levels
  
  R1: 114.12 (38.2% Retracement level)
  
  R2: 114.63 (23.6% Retracement level)
  
  R3: 115.00 (Psychological levels)
  
  Support Levels
  
  S1: 113.68 (50 % Retracement level)
  
  S2: 113.24 (61.8 % Retracement level)
  
  S3: 112.91 (March 16th lows)