Fundamental overview:

USD/JPY is expected to consolidate with a bullish bias after hitting a seven-year high 118.25 this morning. FOMC October meeting minutes released overnight were relatively uneventful after providing little insight into whether the pledge to keep rates low for a "considerable period" would be scrapped at the next meeting. Still, the Fed minutes reinforced views that the U.S. central bank remains on track to raise rates ahead of central banks in Europe and Japan. USD/JPY is underpinned by the weak yen sentiment after Bank of Japan on Wednesday decided to maintain its large-scale easing policy of pumping money into the economy at an annual pace of JPY80 trillion by an 8-1 vote, indicating more consensus among the policy board's nine members compared to the 5-4 vote at its previous meeting. USD/JPY is also supported by the higher U.S. Treasury yields (10-year at 2.359% versus 2.322% late Tuesday) and demand from Japan's importers. But USD/JPY gains are tempered by Japan's export sales. No FX impact from mixed U.S. housing data as surprise 2.8% on-month drop in U.S. October housing starts (versus forecast for 0.8% increase) offset more-than-expected 4.8% rise in building permits (versus forecast +0.6%).

Technical comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at the 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 119 and the second target at 119.70. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 116.75. A break of this target would push the pair further downwards and one may expect the second target at 116.35. The pivot point is at 117.40.

Resistance levels:
119
119.70
120.35

Support levels:
116.75
116.35
116.05