Fundamental overview:
USD/JPY is expected to consolidate with a bullish bias after hitting a three-day high of 119.97 on Thursday as markets await 1330 GMT U.S. December non-farm payrolls (expected to have increased by 240,000) and unemployment rate (expected to have slipped to 5.7% from November's 5.8%). USD/JPY is underpinned by the yen-funded carry trades amid positive risk sentiment (VIX fear gauge eased 11.91 to 17.01; S&P 500 closed up 1.79% at 2,062.14 overnight) as expectations of continued accommodative monetary policy from major central banks stoked investor risk appetite. USD/JPY is also supported by the positive dollar sentiment (ICE spot dollar index hit nine-year high 92.528 Thursday, last at 92.31 versus 92.02 early Thursday), higher U.S. Treasury yields (10-year at 2.013% versus 1.952% late Wednesday), demand from Japan importers and the Bank of Japan's large-scale monetary easing policy. But the USD sentiment is dented by more-than-expected 294,000 U.S. jobless claims in a week ended Jan. 3 (versus forecast 290,000), less-than-expected $14.08 billion increase in U.S. November consumer credit (versus forecast +$15.0 billion). USD/JPY gains are also tempered by Japanese exports and positions adjustment ahead of the long weekend in Japan (financial markets in Japan are shut on Monday for a public holiday).

Technical comment:
The daily chart is mixed as MACD is bearish, the five-day moving average is below the 15-day moving average and declining but stochastics turned neutral.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 118.5. A break of this target will move the pair further downward to 118.05. The pivot point stands at 119.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 119.95 and the second target at 120.3.

Resistance levels:
119.95
120.3
120.65
Support levels:
118.50
118.05
117.75