Fundamental overview:

USD/JPY is expected to consolidate with a bullish bias after hitting a seven-year high 116.11 on Tuesday. It is underpinned by the negative yen sentiment after reports that the Japanese government could delay a sales tax increase that was scheduled for October 2015, and that Prime Minister Abe might call a snap election for the lower house of parliament in December. USD/JPY is also supported by the demand from Japan importers and ultra-loose Bank of Japan's monetary policy. But USD/JPY gains are tempered by Japan's export sales and broadly weaker demand for USD (ICE spot dollar index last 87.57 versus 87.78 early Tuesday). Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at the overbought levels, 5 and 15-day moving averages are advancing.

Technical comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated in the overbought zone, 5 and 15-day moving averages are advancing.

Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 116.25 and the second target at 116.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 114.20. A break of this target would push the pair further downwards and one may expect the second target at 113.80. The pivot point is at 114.65.

Resistance levels:
116.25
116.90
117.35

Support levels:
114.20
113.80
113