• USD/JPY declined on Wednesday as political risks posed by-elections in Europe and worries over U.S. President Donald Trump's policies increased demand for safe-haven Japanese yen.
   
• Investors are concerned about the strong showing in the French presidential race of far-right candidate Marine Le Pen, who has promised to take France out of the eurozone and to hold a referendum on European Union membership.
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• Further upside is expected to be limited as the pair finds strong resistance at 113.79 which should limit upside and bring a decline towards lower levels.
   
• To the upside, the strong resistance can be seen at 112.98, a break above this level would take the pair towards next resistance level at 113.43.
   
• To the downside immediate support can be seen at 111.60, a break below this level will open the door towards next level at 111.00.
  
  Resistance Levels
  
  R1: 112.27 (50% Retracement Level)
  
  R2: 112.98 (61.8% Retracement Level)
  
  R3: 113.43 (Feb 3rd high)
  
  Support Levels
  
  S1: 111.60 (38.2% Retracement Level)
  
  S2: 111.00 (Psychological levels)
  
  S3:110.68 (23.6% Retracement Level)