• USD/JPY rose on Monday as dollar was supported by jump in U.S. bond yields as traders bet fiscal and trade policies under a Donald Trump administration would stoke inflation.
   
• Trump's stunning U.S. presidential win last week also sparked expectations that the Federal Reserve will raise interest rates in December.
   
• Further downside is expected to be limited as the pair finds strong support at 106.95 should limit further decline and bring rebound towards higher levels in the short term.
   
• To the upside, the strong resistance can be seen at 108.58, a break above this level would take the pair towards next resistance level at 109.11.
   
• To the downside immediate support can be seen at 107.74, a break below this level will open the door towards next level at 106.95.
  
  Resistance Levels
  
  R1: 108.58 (38.2% Retracement Level)
  
  R2: 109.11 (June 3rd highs)
  
  R3: 109.52 (23.6% Retracement Level)
  
  Support Levels
  
  S1: 107.74 (50% Retracement Level)
  
  S2: 106.95 (61.8% Retracement Level)
  
  S3: 106.00 (Psychological levels)