Fundamental overview:
USD/JPY is expected to consolidate with bullish bias. USD/JPY is supported by the yen-funded carry trades amid positive risk sentiment (VIX fear gauge eased 13.53% to 16.81, S&P 500 closed up 2.4% at 2,061.23 overnight) as investors remained reassured by the Federal Reserve's pledge on Wednesday to be "patient" on raising interest rates, while data out of Germany and the U.K. were upbeat. USD/JPY is also supported by the higher U.S. Treasury yields (10-year at 2.207% versus 2.135% on late Wednesday), positive dollar sentiment (ICE spot dollar index last 89.21 versus 89.07 on early Thursday), fewer than expected 289,000 U.S. jobless claims for a week ended on December 13 (versus forecast 295,000), demand from Japan's importers and the Bank of Japan's large-scale monetary easing policy. But USD sentiment is dented by the drop in Markit U.S. services PMI (flash reading for December) to 53.6 from 56.2 in November, fall in the U.S. Philadelphia Fed business index to 24.5 in December from November's 40.8. USD/JPY gains are also tempered by the Japanese export sales and positions adjustment before the weekend.

Technical comment:
The daily chart is mixed as the MACD is bearish, but stochastics is in bullish Mode.

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 119.60 and the second target at 120.15. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 117.75. A break of this target would push the pair further downward and one may expect the second target at 117. The pivot point is at 118.40.

Resistance levels:
119.60
120.15
120.45

Support levels:
117.75
117
116.65