Overview:

USD/JPY is expected to trade in a higher range. It is underpinned by the positive dollar sentiment (ICE spot dollar index last 80.01 versus 79.37 early Wednesday) after the Federal Reserve tapered its bond-buying program by another $10 billion to $55 billion a month, as expected, but pointed to earlier interest rate rises as it forecast rates of 1% by end of 2015, up from 0.75% in December. USD/JPY is also supported by the higher U.S. Treasury yields, demand from the Japanese importers and loose Bank of Japan monetary policy. But USD/JPY gains are tempered by Japan's exports sales, selling of yen crosses amid decreased investor risk appetite (VIX fear gauge rose 4.13% to 15.12, S&P fell 0.61% overnight).

Technical сomment:
Daily chart is mixed as MACD is bearish, but stochastics is turned bullish at oversold zone.

Trading recommendation:

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 far as the price is above its pivot point, a long position is recommended with the first target at 102.85 and the second target at 103.15. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 101.20. A breach of this target will push the pair further downwards and one may expect the second target at 100.64. The pivot point is at 101.75.

Resistance levels:
102.85
103.15
103.45

Support levels:
101.20
100.65
100.35