Overview:

USD/JPY is expected to consolidate with bearish bias after hitting its three-week high at 102.79 on Tuesday as markets await the Bank of Japan's interest rate announcement (BOJ is not expected to implement further monetary easing so soon after the April 1 consumption-tax increase), 12:30 GMT U.S. 1Q advance estimate real GDP and 18:00 GMT the Federal Reserve interest rate announcement. USD/JPY is underpinned by the yen-funded funded carry trades amid positive investor risk appetite (VIX fear gauge eased 1.86% to 13.71) as Wall Street rose overnight (S&P 500 closed 0.48% higher at 1,878.33) on upbeat earnings news, waning geopolitical tensions between Russia and the West. USD/JPY is also supported by the higher U.S. Treasury yields and demand from the Japanese importers and investment trusts. But USD/JPY gains are tempered by the Japanese exports sales and soft dollar sentiment on weaker-than-expected U.S. Conference Board April consumer confidence index of 82.3 (versus 83.0 forecast), smaller-than-expected 12.9% on-year increase in U.S. February S&P/Case-Shiller 20-city home price index (versus forecast +13.1%).

Technical сomment:
Daily chart is positive-biased as MACD and stochastics is bullish.

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 101.90 and the second target at 101.70. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 102.75. A breach of this target will push the pair further downwards and one may expect the second target at 102.90. The pivot point is at 102.65.

Resistance levels:
102.75
102.90
103.20

Support levels:
101.90
101.70
101.50