• USD/JPY pair inched higher in European session up to 104.00 levels, but declined slightly in the US session after U.S. manufacturing activity unexpectedly declined in August.
   
• However, further downside for this pair is expected to be limited as the pair finds strong support at 101.96 which should limit the slipping below and bring rebound back  towards higher levels.
   
• To the upside, immediate resistance can be seen at 104.00, a break above this level would take the pair towards next resistance level at 104.74.
   
• To the downside, strong support can be seen at 102.80, a break below this level will open the door towards next level at 101.96.
  
  Resistance Levels
  
  R1: 103.70 (38.2% Retracement Level)
  
  R2: 104.00 (Session high)
  
  R3: 104.74 (23.6% Retracement Level)
  
  Support Levels
  
  S1: 102.80 (50% Retracement Level)
  
  S2: 101.96 (61.8% Retracement Level)
  
  S3:101.00 (Psychological levels)