Overveiw:
USD/JPY is consolidating after hitting near-two-month high of 79.47 on Thursday. The rate is underpinned by weaker JPY sentiment on expectations that the Bank of Japan will ease monetary policy at its Oct. 30 meeting. USD/JPY is also supported by demand from Japan importers and investment trusts; better-than-expected improvement in Philadelphia Fed's index of general business activity to 5.7 this month from negative 1.9 in September (vs. 1.0 forecast); 0.6% rise in Conference Board's September index of leading economic indicators (vs. +0.2% forecast). But USD/JPY gains tempered by Japan exporter sales; selling of yen crosses amid diminished risk tolerance (S&P down 0.24%, Nasdaq -1.01% overnight) as investor sentiment dented by disappointing 3Q earnings report from Google and bigger-than-expected 46,000 jump in latest U.S. weekly jobless claims to 388,000 (vs. 365,000 forecast). USD/JPY is also weighed by Japan exporter sales; concerns about U.S. "fiscal cliff" that could throw the U.S. economy back into recession; and positions adjustment before weekend.
Preference:
As technical indicator are still showing the pair on uptrend, buying position is suitable at this time with Long positions above 79.05 with target  79.5 and in extension 79.7.
Resistance Levels:
R1 - 79.47 (Thursday's high, just above 200-day moving average)
R2 - 79.66 (Aug. 20 reaction high)
R3 - 79.97-80.00   
Alternative scenario:
In case market moves downwards and breaks the pivot point, below 79.05 sell with target 78.95 and 78.8 in extension.
Support Levels:
S1 - 78.91 (Thursday's low)
S2 - 78.8 *** intraday support
78.61 (Wednesday's low).
Technical Comment:
The pair stands above its intermediary support at 79.05 and remains within a bullish channel. USD/JPY daily chart is still positive-biased as MACD and stochastics are bullish; five-day moving average is above 15-day MA and rising.