• USD/JPY declined on Monday as investors worried that U.S. President Donald Trump's defeat over healthcare reform foreshadowed difficulties delivering other key campaign promises, in particular fiscal stimulus.
   
• Trump's failure to rally enough support from his own Republican party which controls both houses of U.S. Congress to repeal and replace Obamacare.
   
• Safe-haven Japanese yen fell to a fouth-month low at 110.09, as investors ditched riskier assets and unwound bets on higher inflation and interest rates.
   
• Further upside in this pair is expected to be limited as strong resistance at 111.88 is set to limit further upside and bring decline towards lower levels in the short term.
   
• To the upside, the immediate resistance can be seen at 110.81, a break above this level would take the pair towards next resistance level at 111.88.
   
• To the downside, immediate support can be seen at 109.64, a break below this level will open the door towards next level at 109.00.
  
  Resistance Levels
  
  R1: 110.81 (50% Retracement Level)
  
  R2: 111.88  (61.8% Retracement Level)
  
  R3: 112.86  (March 21st high)
  
  Support Levels
  
  S1: 109.64 (38.2% Retracement Level)
  
  S2: 109.00 (Psychological levels)
  
  S3:108.26 (23.6% Retracement Level)