• USD/JPY rose sharply on Tuesday as yesterday’s better-than-expected U.S. manufacturing data accelerated the pair’s upside.
   
• Forecast-beating U.S. manufacturing data on Monday stoked expectations that the Federal Reserve will lift interest rates by year-end, driving the dollar higher and weighing on gold.
   
• The ongoing upside for the pair is set to continue as the pair finds strong support at 102.00 which should limit any downside and push the pair towards higher levels.
   
• To the upside, the immediate resistance can be seen at 102.71, a break above this level would take the pair towards next resistance level at 103.15.
   
• To the downside, immediate support can be seen at 102.34, a break below this level will open the door towards next level at 102.00.
  
  Resistance Levels
  
  R1: 102.71 (38.2% Retracement Level)
  
  R2: 103.15 (23.6% Retracement Level)
  
  R3: 103.35 (Sep 14th  high)
  
  Support Levels
  
  S1: 102.34 (50% Retracement Level)
  
  S2: 102.00 (61.8% Retracement Level)
  
  S3:101.50 (Sep 20th lows)