• USD/JPY pair inched higher initially in European session up to 106.36, but declined slightly in the early US session after data showed US producer price index printed positive figures.
   
• Producer price index for final demand increased 0.4 percent last month after rising 0.2 percent in April, the PPI slipped 0.1 percent after being unchanged in April.
   
• Concerns over Britain’s referendum on its EU membership is set to increase the demand for safe haven assets like Japanese yen, therefore, it’s good to sell this pair on rallies.
   
• To the upside, the strong resistance can be seen at 107.67, a break above this level would take the pair towards next resistance level at 108.00.
   
• To the downside immediate support can be seen at 105.90, a break below this level will open the gates towards next level at 105.53.
  
  Resistance Levels
  
  R1: 106.82 (50% Retracement level)
  
  R2: 107.67 (61.8% Retracement level)
  
  R3: 108.00 (Psychological levels)
  
  Support Levels
  
  S1: 105.90 (38.2 % Retracement level)
  
  S2: 105.53 (June 14th  lows)
  
  S3: 104.95 (23.6 % Retracement level)