• The USD/JPY pair declined towards 105.79 levels in the US session as investor sentiment was hurt after US stocks edged lower and trader’s awaited signals of a potential interest rate increase this year from this week's meeting of U.S. Federal Reserve policymakers.
   
• However, the pair is set to advance further on speculation that Japan's central bank could unveil a fresh batch of monetary stimulus on Friday.
   
• Currently, the currency pair is trading at 105.79 levels, it is set to advance further towards 106.50 and later towards 107.00 levels in the short term.
   
• Strong support can be seen at 105.70, a break below this level will expose the pair towards next support level located at 105.26 levels.
   
• Major resistance can be seen at 106.90, a break above this level will open the gates towards 107.52 levels.
  
  Resistance Levels
  
  R1: 106.29 (38.2% Retracement Level)
  
  R2: 106.90 (23.6% Retracement Level)
  
  R3: 107.52 (July 21st  high )
  
  Support Levels
  
  S1: 105.70 (50% Retracement Level)
  
  S2: 105.26 (61.8% Retracement Level)
  
  S3:104.61 (July 15th lows)