Fundamental overview:

USD/JPY is expected to consolidate in a higher range . USD/JPY is underpinned by the yen-funded carry trades amid the positive risk sentiment (VIX fear gauge eased 2.17% to 12.62, S&P 500 gained 0.29% to post record-high close of 2,069.41 overnight) on encouraging data from Germany and easy-money policies globally. USD/JPY is also supported by the demand from Japan's importers and Bank of Japan's large-scale easing policy. But USD/JPY gains are tempered by Japan's export sales and lower U.S. Treasury yields (10-year at 2.302% versus 2.315% late Friday), softer USD sentiment (ICE spot dollar index last 88.15 versus 88.41 early Monday) after lower Markit flash U.S. November services PMI of 56.3 versus final October reading of 57.1, drop in Chicago Fed National Activity Index to +0.14 in October from +0.29 in September.

Technical comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought levels, 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 118.70 and the second target at 119. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 117.40. A break of this target would push the pair further downwards and one may expect the second target at 116.75. The pivot point is at 117.75.

Resistance levels:
118.70
119
119.70

Support levels:
117.40
116.75
116.35