• The USD/JPY declined on Friday as oil prices slid and bank shares led global equity markets lower, stoking a fresh wave of demand for safe heaven assets.
   
• The pair also declined on expectation that the Federal Reserve is widely expected to leave policy rates unchanged next week.
   
• Further upside is expected to be limited as the pair finds strong resistance at 107.65 which should limit upside and bring a decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 107.15, a break above this level would take the pair towards next resistance level at 107.65.
   
• To the downside immediate support can be seen at 106.66, a break below this level will open the door towards next level at 106.03.
  
  Resistance Levels
  
  R1: 107.15 (50% Retracement Level)
  
  R2: 107.65 (61.8% Retracement Level)
  
  R3: 108.00 (Psychological levels)
  
  Support Levels
  
  S1: 106.66 (38.2% Retracement Level)
  
  S2: 106.03 (23.6% Retracement Level)
  
  S3:105.51 (May 3rd lows)