• USD/JPY declined sharply on Wednesday as talk that U.S. President Donald Trump could face the threat of impeachment boosted safe-haven Japanese yen.
   
• News emerged on Tuesday that Trump had asked his now-dismissed FBI chief James Comey to end the agency's investigation into ties between former White House national security adviser Michael Flynn and Russia.
   
• That raised questions about whether Trump tried to interfere with a federal investigation, spurring speculation over the likelihood of an early exit from office for the former businessman.
   
• The dollar fell by as much as 1.35 percent against the yen, breaching below 112 yen level to trade at 111.31 yen in the late US session.
   
• The pair is set to reach 111.00 and later towards 110.50 in the short term as the US dollar is set to weaken further against its Japanese counterpart in the short term. Therefore it’s good to sell this pair on rally.
   
• To the upside, the strong resistance can be seen at 115.06, a break above this level would take the pair towards next resistance level at 115.38.
   
• To the downside immediate support can be seen at 113.81, a break below this level will open the gates towards next level at 113.24.
  
  Resistance Levels
  
  R1: 111.83 (50% Retracement level)
  
  R2: 112.71 (61.8% Retracement level)
  
  R3: 113.00 (Psychological levels)
  
  Support Levels
  
  S1: 110.95 (38.2 % Retracement level)
  
  S2: 110.54 (April 5h lows)
  
  S3: 109.83 (23.6 % Retracement level)