Overview:
USD/JPY is consolidating with bullish bias after hitting four-day high of 80.21 on Thursday, as markets are awaiting 12:30 GMT U.S. October non-farm payrolls (expected +125,000) and unemployment rate (tipped to have risen to 7.9% from 7.8%). USD/JPY is underpinned by reduced safe-haven appeal of the yen and yen-funded carry trades as global risk sentiment improves (VIX fear gauge eased 10.32% to 16.68; S&P rose 1.09% overnight) after China's official manufacturing PMI rose to 50.2 in October from 49.8 in September; surprise gain in U.S. ISM manufacturing PMI to 51.7 in October from 51.5 in September (vs. forecast for drop to 51.0); improvement in U.S. Conference Board consumer confidence index to 72.2 in October, its highest reading since early 2008, from 68.4 in September; ADP reporting more-than-expected 158,000 private-sector jobs were created in October; bigger-than-expected drop in latest U.S. weekly jobless claims to 363,000. USD/JPY also supported by higher U.S. Treasury yields; demand from Japan importers and investment trusts. But USD/JPY upside is limited by Japan exporter sales; caution ahead of Tuesday's U.S. presidential election; concerns about U.S. "fiscal cliff" that could throw the U.S. economy back into recession; positions adjustment before weekend.
Preference:
Buy above 80 with target  80.4 and 80.6 in extension.
Resistance Levels:
R1 - 80.38 (Oct. 26 four-month high)
R2 - 80.63 (June 25 high)
R3 - 81.00  
Alternative scenario:
Sell below. Below 80 look for further downside with 79.85 and 79.65 as targets.
Support Levels:
S1 - 79.85
S2 - 79.65
S3 - 79.51 (Wednesday's low)  
Technical Comment:
The pair remains within a bullish channel. USD/JPY daily chart is positive-biased as MACD is bullish, stochastics is reverting to bullish mode at overbought.