FxWirePro: USD/JPY loses momentum but outlook is bullish

• The USD/JPY pair inched slightly higher on Wednesday, as investors waited with caution for Federal Reserve statement while the BOJ is also due to release its statement just few hours after the Fed. 
• The pair made a slight bounce after positive US pending home sales data but retreated back to trade at 111.20.
   
• Further downside is expected to be limited as the pair finds strong support at 110.80 which should limit decline and bring a rebound towards higher levels. 
   
• To the upside, the strong resistance can be seen at 111.93, a break above this level would take the pair towards next resistance level at 112.48.
   
• To the downside immediate support can be seen at 111.12, a break below this level will open the door towards next level at 110.80.

Resistance Levels

R1: 111.46 (38.2% Retracement Level)

R2: 111.93 (23.6% Retracement Level)

R3: 112.48 (April 1st high)

Support Levels

S1: 111.12 (50% Retracement Level)

S2: 110.80 (61.8% Retracement Level)

S3: 110.26 (April 22nd)