• USD/JPY dipped slightly on Tuesday as rising political uncertainty in Europe spurred increased safe-haven demand.
   
• Investors are concerned about next week's election in Britain, as well as the prospect of early elections in Italy and worries over Greek debt.
   
• Eurozone finance ministers' failure to agree on Greek debt relief with the International Monetary Fund last week also added to risk aversion.
   
• Further upside in this pair is expected to be limited as the pair finds strong resistance at 112.00 which should limit further upside and bring decline towards lower levels in the short term.
   
• To the upside, the immediate resistance can be seen at 111.45, a break above this level would take the pair towards next resistance level at 112.00.
   
• To the downside, immediate support can be seen at 110.69, a break below this level will open the door towards next level at 110.20.
  
  Resistance Levels
  
  R1: 111.45 (50 % Retracement Level)
  
  R2: 112.00 (Psychological levels)
  
  R3: 112.24 (61.8% Retracement Level)
  
  Support Levels
  
  S1: 110.69 (38.2% Retracement Level)
  
  S2: 110.20 (May 18t lows)
  
  S3:109.69 (23.6% Retracement Level)