• USD/JPY inched higher on Thursday as the greenback rallied on the back of the hawkish U.S. Federal Reserve statement.
   
• The Fed kept interest rates unchanged on Wednesday while emphasising the strength of the labour market - a sign it was still on track for two more rate rises this year.
   
• The dollar was also boosted after data showed U.S. jobless benefits fell more than expected last week and the number of Americans on unemployment rolls hit a 17-year low.
   
• Other data showed a jump in labor costs, raising expectations that wages will continue to increase and help boost inflation to the Fed’s 2 percent target.
   
• The ongoing upside is set to continue for this pair as support level at 111.94 is likely to act as strong barrier to bears in the short term.
   
• To the upside, the strong resistance can be seen at 113.72, a break above this level would take the pair towards next resistance level at 114.00.
   
• To the downside immediate support can be seen at 112.49, a break below this level will open the door towards next level at 111.94.
  
  Resistance Levels
  
  R1: 113.04 (38.2% Retracement Level)
  
  R2: 113.72 (Psychological levels)
  
  R3: 114.00 (Psychological levels)
  
  Support Levels
  
  S1: 112.49 (50% Retracement Level)
  
  S2: 111.94 (61.8% Retracement Level)
  
  S3: 111.39 (May 5th lows)