• USD/JPY rose on Thursday as dollar demand improved with higher global bond yields and stable stock markets.
   
• The U.S. dollar rebounded after its worst run since August as investors refocused on the chances of higher U.S. inflation and growth.
   
• Further downside is expected to be limited as the pair finds strong support at 113.55 should limit further decline and bring rebound towards higher levels in the short term.
   
• To the upside, immediate resistance can be seen at 114.70, a break above this level would take the pair towards next resistance level at 115.23.
   
• To the downside immediate support can be seen at 114.              18, a break below this level will open the door towards next level at 113.55.
  
  Resistance Levels
  
  R1: 114.70 (50% Retracement Level)
  
  R2: 115.23 (61.8% Retracement Level)
  
  R3: 115.61 (Jan 19th high)
  
  Support Levels
  
  S1: 114. 18 (38.2% Retracement Level)
  
  S2: 113.55 (23.6% Retracement Level)
  
  S3: 113.00 (Psychological levels)