• USD/JPY declined in the US session as caution over North Korea and President Donald Trump's abrupt firing of FBI Director James Comey revived safe-haven bids on Thursday.
   
• However upbeat U.S. data showing a tightening jobs market and accelerating inflation limited the dollar decline.
   
• New applications for U.S. jobless benefits unexpectedly fell last week while producer prices rebounded strongly in April, pointing to a tightening labor market and rising inflation that could spur the Federal Reserve to raise interest rates in June.
   
• Initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 236,000 for the week ended May 6, the Labor Department said on Thursday, confounding economists' expectations for a rise to 245,000.
   
• Further downside for this pair is expected to be limited as strong support at 112.67 is set to hold the bears from falling further below.
   
• To the upside, major resistance can be seen at 114.32, a break above this level would take the pair towards next resistance level at 114.90.
   
• To the downside immediate support can be seen at 113.44, a break below this level will open the gates towards next level at 112.67.
  
  Resistance Levels
  
  R1: 114.32 (38.2% Retracement level)
  
  R2: 114.90 (March 15th high)
  
  R3: 115.35 (23.6% Retracement level)
  
  Support Levels
  
  S1: 113.44 (50% Retracement level)
  
  S2: 112.67 (61.8% Retracement level)
  
  S3: 112.04 (May 5th lows)