• USD/JPY inched higher in the US session  as strong U.S. economic data buoyed the dollar and further cemented the case for hiking rates in December.
   
• U.S. private employers stepped up hiring in November much more than expected and consumer spending increased last month, giving more ammunition to the Federal Reserve for a rate increase.
   
• Further downside is expected to be limited as the pair finds strong support at 112.63 which should limit further decline and bring rebound towards higher levels in the short term.
   
• To the upside, immediate resistance can be seen at 113.83, a break above this level would take the pair towards next resistance level at 114.00.
   
• To the downside immediate support can be seen at 113.21, a break below this level will open the door towards next level at 112.63.
  
  Resistance Levels
  
  R1: 113.83 (38.2% Retracement Level)
  
  R2: 114.00 (Psychological levels)
  
  R3: 114.58 (23.6% Retracement Level)
  
  Support Levels
  
  S1: 113.21 (50% Retracement Level)
  
  S2: 112.63 (61.8% Retracement Level)
  
  S3: 112.01 (Nov 30th lows)