• USD/JPY inched higher on Wednesday as investors awaited President Donald Trump's announcement on tax reform and remained optimistic that the government would avert a shutdown.
   
• U.S. President Donald Trump will release a tax plan on Wednesday proposing some deep rate cuts, mostly for businesses, including a slashed corporate income tax rate and steeply discounted tax rate for overseas corporate profits brought into the United States.
   
• Investors were also confident that any U.S. government shutdown could be prevented, particularly after Trump indicated he would compromise on a budget.
   
• The ongoing upside is set to continue for this pair as support level at 110.90 is likely to act as strong barrier to bears in the short term.
   
• To the upside, the strong resistance can be seen at 112.00, a break above this level would take the pair towards next resistance level at 112.26.
   
• To the downside immediate support can be seen at 111.30, a break below this level will open the door towards next level at 110.90.
  
  
  Resistance Levels
  
  R1: 111.73 (38.2% Retracement Level)
  
  R2: 112.00 (Psychological levels)
  
  R3: 112.26 (23.6% Retracement Level)
  
  Support Levels
  
  S1: 111.30 (50% Retracement Level)
  
  S2: 110.90 (61.8% Retracement Level)
  
  S3: 110.26 (April 4th lows)