• USD/JPY dipped slightly in the US session on Tuesday as investors took profits after dollar rose on the view that Federal Reserve might raise interest rates in March.
   
• Investors were looking ahead to Wednesday's release of the Federal Reserve's minutes of its latest meeting for clues on the timing of the next interest rate hike.
   
• Fed Chair Janet Yellen said last week that an increase would be considered at every policy meeting, suggesting the U.S. central bank could move next month.
   
• The pair is set to reach 114. 0 and later towards 114.50 in the short term as the US dollar is set to strengthen against its Japanese counterpart in the short term. Therefore, it’s good to buy this pair on dips.
   
• To the upside, the strong resistance can be seen at 114.22, a break above this level would take the pair towards next resistance level at 114.98.
   
• To the downside immediate support can be seen at 113.41, a break below this level will open the gates towards next level at 113.00.
  
  Resistance Levels
  
  R1: 113.71 (Daily high)
  
  R2: 114.22 (38.2% Retracement level)
  
  R3: 114.98 (Feb 15th high)
  
  Support Levels
  
  S1: 113.41 (50 % Retracement level)
  
  S2: 113.00 (Psychological levels)
  
  S3: 112.60 (61.8 % Retracement level)