• The USD/JPY pair slipped towards lower levels during Tuesday's US session, as demand for Japanese’s yen increased after U.S. economic data failed to support expectations for a June Federal Reserve interest rate hike.
   
• The safe-haven Japanese currency also gained on speculation that Japanese Prime Minister Shinzo Abe will announce a delay to next year's proposed sales tax hike on Wednesday.
   
• Further downside is expected to be limited as the support level located at 110.00  is likely to hold the bears from falling further below and bring a rebound back towards higher levels.
   
• To the upside, the strong resistance can be seen at 111.31, a break above this level would take the pair towards next resistance level at 111.79.
   
• To the downside immediate support can be seen at 110.45, a break below this level will open the gates towards next level at 110.00.
  
  Resistance Levels
  
  R1: 111.31 (38.2% Retracement level)
  
  R2: 111.79 (April 28th high)
  
  R3: 111.36 (23.6% Retracement level)
  
  Support Levels
  
  S1: 110.45 (50 % Retracement level)
  
  S2: 110.00 (Psychological levels)
  
  S3: 109.50 (61.8 % Retracement level)