Fundamental overview:

USD/JPY is expected to consolidate with a bullish bias as markets await FOMC October meeting minutes (due at 1900 GMT) for details on the monetary policy committee's outlook on health of U.S. economy and Federal Reserve's intentions for interest rates. Focus Wednesday also on Bank of Japan's interest rate decision: most market participants don't expect a back-to-back easing by the BOJ after the central bank stepped up its already aggressive easing at its Oct. 31 meeting. USD/JPY is underpinned by the yen-funded carry trades amid positive risk sentiment (VIX fear gauge eased 0.93% to 13.86; S&P 500 hit all-time high 2,056.08 overnight before closing up 0.51% at 2,051.80) on prospects of more stimulus efforts from major central banks, while a measure of German economic confidence improved for the first time in nearly a year, and U.S. NAHB housing market index rose stronger than expected to 58 in November from 54 in October (versus forecast 55). USD/JPY is also supported by the demand from Japan importers and soft yen sentiment as Prime Minister Abe on Tuesday delayed a scheduled sales-tax increase until April 2017 and confirmed a snap election. But USD/JPY gains are tempered by the Japan exporter sales and lower U.S. Treasury yields (10-year at 2.318% versus 2.340% late Monday) despite a surprise 0.2% on-month rise in U.S. October PPI (versus forecast for 0.1% decrease).

Technical comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought levels, 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 118.05 and the second target at 118.45. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 116.35. A break of this target would push the pair further downwards and one may expect the second target at 116.05. The pivot point is at 116.75.

Resistance levels:
118.05
118.45
118.75

Support levels:
116.35
116.05
115.80