Overview:
USD/JPY is consolidating in higher range before 18:00 GMT U.S. Federal Open Market Committee interest rate decision, which is followed by Chairman Bernanke's press briefing. Market participants are watching for indication about when the Federal Reserve will taper down its monthly purchases of $45 billion of Treasurys and $40 billion of mortgage securities, and how it would do it; but risk appetite is positive as investors expect mostly reassuring words from Mr. Bernanke, and is bolstered by lower-than-expected U.S. May CPI (rose 0.1% vs +0.2% forecast). USD/JPY is underpinned by yen-funded carry trades amid positive risk sentiment (VIX fear gauge eased 1.13% to 16.61; S&P rose 0.78% overnight); demand from Japan importers. But USD/JPY gains are tempered by Japan exporter sales; concerns that Japan may not be able to follow through on promises of aggressive monetary easing. Daily chart is mixed as MACD is bearish, but stochastics have turned bullish at oversold. 

Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot with the first target at 95.85 and the second target at 96.5. You should keep in view short position below the pivot keep of the first target at 94.25, breach of this target will move the pair downward further and expect the second target at 93.75. The pivot point stands at 94.65.     

Resistance levels: 
R1 - 95.85 
R2 - 96.5 
R3 - 96.85

Support levels: 
S1 - 94.25 
S2 - 93.75 
S3 - 93.5