FxWirePro: USDJPY neutral near-term, scope for upward resumption

• The USD/JPY pair declined on Tuesday, after data release from US showed building permits came less than expected figures at 1.116 million in April and Core CPI came at 0.2% .
   
• Immediately after the data release the dollar attracted short selling interest against Japanese yen.
   
• However, further downside is expected to be limited as the pair finds strong support at 108.52 which should limit decline and bring a rebound towards higher levels. 
   
• To the upside, the strong resistance can be seen at 109.53, a break above this level would take the pair towards next resistance level at 110.00.
   
• To the downside immediate support can be seen at 108.52, a break below this level will open the door towards next level at 108.18.

Resistance Levels

R1: 109.19 (23.6% Retracement Level)

R2: 109.53 (May 13th high)

R3: 110.00 (Psychological levels)

Support Levels

S1: 108.80 (38.2% Retracement Level)

S2: 108.52 (50% Retracement Level)

S3: 108.18 (61.8% Retracement Level)