• USD/JPY inched higher on Wednesday the greenback strengthened on expectations that Federal Reserve increase the US interest rate.
   
• The U.S. Federal Reserve is due to release its policy statement at 2 pm EDT (1800 GMT), with the central bank widely expected to raise interest rates for the second time in three months.
   
• Market participants will be watching for whether the Fed will signal an even faster pace of monetary tightening this year than the three rate hikes it projected in December.
   
• Further downside in this pair should be limited as strong support at 114.00 should limit downside and bring rebound towards higher levels in the short term.
   
• To the upside, the strong resistance can be seen at 116.00, a break above this level would take the pair towards next resistance level at 116.35.
   
• To the downside immediate support can be seen at 114.63, a break below this level will open the door towards next level at 114.00.
  
  Resistance Levels
  
  R1: 115.40 (23.6% Retracement Level)
  
  R2: 116.00 (Psychological levels)
  
  R3: 116.35 (Jan 10th highs)
  
  Support Levels
  
  S1: 114.63 (38.2% Retracement Level)
  
  S2: 114.00 (50% Retracement Level)
  
  S3: 113.36 (61.8% Retracement Level)