• USD/JPY declined on Tuesday as traders were concerned about protectionist trade policies by U.S. President-elect Donald Trump, which hurt the U.S. dollar and increased demand for Safe-haven assets.
   
• Safe-haven assets such as gold, the Japanese yen and U.S. Treasuries benefited as investors sought refuge ahead of Trump inauguration.
   
• Trump's campaign calls for tax cuts and more infrastructure spending, but his protectionist statements and a flurry of off-the-cuff Tweets have kept many investors from adding to risky positions.
   
• Further upside is expected to be limited as the pair finds strong resistance at 114.31 which should limit further upside and bring decline towards lower levels in the short term.
   
• To the upside, immediate resistance can be seen at 113.40, a break above this level would take the pair towards next resistance level at 113.90.
   
• To the downside immediate support can be seen at 112.90, a break below this level will open the door towards next level at 112.29.
  
  Resistance Levels
  
  R1: 113.40 (50% Retracement Level)
  
  R2: 113.90 (61.8% Retracement Level)
  
  R3: 114.31 (Daily high)
  
  Support Levels
  
  S1: 112.90 (38.2% Retracement Level)
  
  S2: 112.29 (23.6% Retracement Level)
  
  S3: 111.95 (Nov 30th lows)