• USD/JPY inched higher on Monday as safe-haven demand waned following pro-EU candidate Emmanuel Macron's victory in the French presidential election.
   
• The removal of the political risk associated with Macron's rival Marine Le Pen, who had vowed to take France out of the Eurozone left investors to focus their attention on the pace of monetary policy normalisation in Europe and the United States.
   
• The pair is set to reach 113.50 and later towards 114.00 in the short term as the US dollar is set to strengthen against its Japanese counterpart in the short term. Therefore it’s good to buy this pair on dips.
   
• To the upside, the strong resistance can be seen at 113.48, a break above this level would take the pair towards next resistance level at 113.76.
   
• To the downside immediate support can be seen at 112.51, a break below this level will open the gates towards next level at 112.30.
  
  Resistance Levels
  
  R1: 113.05 (38.2% Retracement level)
  
  R2: 113.48 (March 17th high)
  
  R3: 113.76 (23.6% Retracement level)
  
  Support Levels
  
  S1: 112.51 (50 % Retracement level)
  
  S2: 112.30 (May 4th lows)
  
  S3: 111.93 (61.8 % Retracement level)