Fundamental overview:

USD/JPY is expected to consolidate with a bullish bias after hitting seven-year high 119.29 on Tuesday. It is underpinned by the positive dollar sentiment (ICE spot dollar index last 88.62 versus 87.98 early Tuesday) after Federal Reserve Vice Chairman Stanley Fischer said the central bank is getting closer to dropping the pledge of keeping interest rates low for a "considerable time" and stronger-than-expected 1.1% increase in U.S. October construction spending (versus forecast +0.6%); jump in U.S. ISM-NY current business index to 62.4 in November from 54.8 in October; weaker oil prices. USD/JPY is also supported by the higher U.S. Treasury yields (10-year at 2.294% versus 2.218% late Monday, the positive investor risk appetite (VIX fear gauge eased 10.08% to 12.85; S&P 500 closed up 0.64% at 2,066.55 overnight), demand from Japan's importers and Bank of Japan's large-scale monetary easing policy. But USD/JPY gains are tempered by Japan's exporter sales and caution ahead of U.S. payrolls report Friday.

Technical comment:
Daily chart is positive-biased as stochastics is bullish, five 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 119.70 and the second target at 120.15. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 118.50. A break of this target would push the pair further downwards and one may expect the second target at 118.10. The pivot point is at 119.

Resistance levels:
119.70
120.15
120.35

Support levels:
118.50
118.10
117.85