• The USD/JPY pair inched higher on Thursday, as gains in global stocks and increased appetite for riskier assets put the Japanese yen under pressure.
   
• The yen sank across the board as the upbeat mood on global stock markets stretched into a sixth day and media reports stoked speculation the Bank of Japan could take steps to fund government spending directly.
   
• Further downside is expected to be limited as the pair finds strong support at 104.49 which should limit the slipping below and bring a rebound towards higher levels.
   
• To the upside, the strong resistance can be seen at 105.85, a break above this level would take the pair towards next resistance level at 106.17.
   
• To the downside immediate support can be seen at 105.15, a break below this level will open the door towards next level at 104.49.
  
  Resistance Levels
  
  R1: 105.85 (38.2% Retracement Level)
  
  R2: 106.17 (June 23rd high)
  
  R3: 106.62 (23.6% Retracement Level)
  
  Support Levels
  
  S1: 105.15 (50% Retracement Level)
  
  S2: 104.49 (61.8% Retracement Level)
  
  S3:103.88 (July 13th lows)