Overview:
USD/JPY is trading in higher range. The rate is buoyed by negative JPY sentiment on expectations that Bank of Japan will take aggressive monetary easing action to weaken the yen and boost the economy--Japanese PM Abe Wednesday formally asked BOJ to adopt a 2% inflation target at the first meeting of a key economic advisory panel. USD/JPY is also supported by buying of yen crosses on improved risk sentiment (S&P rose 0.27% overnight) as upbeat results from U.S. aluminum producer Alcoa set positive tone for U.S. 4Q earnings season and demand from Japan importers. But USD/JPY gains tempered by Japan exporter sales. Yen crosses are vulnerable to China December trade balance data. USD/JPY daily chart is mixed as stochastic is bearish at overbought, but MACD is in bullish mode; bullish outside-day-range pattern was completed on Wednesday.
Other data:
13:30 GMT U.S. weekly jobless claims, 15:00 GMT U.S. November monthly wholesale trade,
19:00 GMT Fed's Bullard speech.  
Preference:
Buy above 87.55 with targets at 88.35 and 88.5.
Resistance Levels:
R1 - 88.38-88.48 band (Monday's high-Friday's 29-month high)
R2 - 88.5
R3 - 88.85
Alternative scenario:
Sell below 87.55. The downside penetration of 87.55 will call for 87.15 and 86.8.
Support Levels:
S1 - 87.15
S2 - 86.82-86.77 (Wednesday's low-Jan. 3 low)
S3 - 86.54 (Jan. 2 low)  
Technical Comment:
The pair has broken above a declining trendline and remains on the upside, the RSI stands above its neutral area and remains well directed.