Overview:
USD/JPY is consolidating after hitting three-and-a-half month high of 80.02 on Tuesday, as markets are awaiting 01:45 GMT October HSBC China flash manufacturing PMI data and 18:15 GMT U.S. FOMC interest rate decision. USD/JPY is undermined by flows to safe-haven JPY and unwinding of JPY-funded carry trades amid heightened risk aversion (VIX fear gauge surged 13.3% to 18.83) as Wall Street tumbled overnight (DJIA down 1.82%) on fears of prolonged U.S. economic slowdown after disappointing third-quarter earnings results from U.S. blue chip companies. USD/JPY is also weighed by Japan exporter sales; lower U.S. Treasury yields; and concerns about U.S. "fiscal cliff" that could throw the U.S. economy back into recession. But USD/JPY downside is limited by demand from Japan importers and weak JPY sentiment on expectations for further monetary easing from Bank of Japan at its Oct. 30 meeting.
Preference:
Buy above 79.65 with first target 80 and if it exceeds further, than second target is 80.10.
Resistance Levels:
R1 - 80.00
R2 - 80.09 (July 5 high)
R2 - 80.35
Alternative scenario:
If price crosses below the pivot point 79.65, look for further downside with 79.4 and 79.1 as targets.
Support Levels:
S1 - 79.4
S2 - 79.14 (Friday's low) 
S3 - 78.91 (Thursday's low)  
Technical Comment:
The pair stands above its support and remains on the upside. USD/JPY daily chart is positive-biased as MACD and stochastics are bullish. Although, latter it was overbought; five-day moving average is above 15-day MA and rising.