• USD/JPY pair declined on Thursday following negative Philadelphia Fed Manufacturing Index in the early US session. The pair hit high at 110.37, after finding buying interest before declining sharply towards 109.70 levels in the early US session.
   
• Further decline is expected to be limited as the support level at 109.20 levels is set to hold the bears from falling further below, and bring a rebound towards higher levels, therefore it’s good to buy this pair around 122.10 levels.
   
• Immediate support can be seen at 109.70, a break below this level will expose the pair downwards towards 109.20 levels.
   
• Major resistance can be seen at 110.20, a break above this level will open the door towards 123.50 levels.
  
  Resistance Levels
  
  R1: 110.20 (38.2% Retracement Level)
  
  R2: 110.86 (23.6% Retracement Level)
  
  R3: 111.50 (April 26th high)
  
  Support Levels
  
  S1: 109.70 (50 % Retracement Level)
  
  S2: 109.20 (61.8 % Retracement Level)
  
  S3: 108.70 (May 18th lows)