• USD/JPY shown a mild decline after a gap up yesterday. The pair jumped till 110.51 and is currently trading around 110.12.
   
• Market awaits tax reform of Donald trump on Wednesday for further direction. It is expected that trump would seek to lower corporate tax to 15%from 35%. JPY trades lower after risk appetite has diminished after first round of French election.
   
• The pair upside is capped by daily Kijun-Sen (110.51) and any break above will take the USD/JPY till 111.45 (100 –day EMA)/112.
   
• The near term support is around 109.59 (38.2% retracement of 108.13 and 110.51) and any break below targets 109.
   
• Short term bullish invalidation only below 108 and any break below will drag the pair down till 106.35 (61.8% retracement of 98.78 and 118.66)/105.
   
• The momentum indicators like MACD and RSI is showing buy signal in the daily chart.
  
  It is good to buy on dips around 109.95-110 with SL around 109 for the TP of 112.