Fundamental overview:

USD/JPY is expected to trade in higher range.It is underpinned by the positive dollar sentiment (ICE spot dollar index last 87.77 versus 87.52 early Monday) as investors renewed their bets that the U.S. economy will continue to strengthen faster than other major economies, while U.S. Treasury yields rose overnight ahead of U.S. bond markets closure for Veterans Day on Tuesday (10-year at 2.360% versus 2.312% late Friday). USD/JPY is also supported by the demand from Japan importers, ultra-loose Bank of Japan's monetary policy and positive investor risk appetite (VIX fear gauge eased 3.43% to 12.67) as S&P 500 hit record-high 2,037.80 overnight before closing up 0.31% at 2,038.26 on steadily improving U.S. economic picture and expectations that Federal Reserve's monetary policy will continue to be supportive for growth. But USD/JPY gains are tempered by Japan's export sales.

Technical comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated in the overbought zone, 5 and 15-day moving averages are advancing.

Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 116.25 and the second target at 116.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 114.40. A break of this target would push the pair further downwards and one may expect the second target at 113.80. The pivot point is at 114.90.

Resistance levels:
116.25
116.90
117.35

Support levels:
114.40
113.80
113