Fundamental Outlook:
USD/JPY is expected to range-trade. It is undermined by the soft dollar sentiment (ICE spot dollar index last 94.19 versus 94.47 early Wednesday) as Federal Reserve Chairwoman Janet Yellen reiterated a cautious stance on interest rates on the second day of her semiannual testimony to lawmakers. USD/JPY is also weighed by the Japanese exports. But the USD/JPY downside is limited by demand from Japan's importers, the ultra-loose Bank of Japan's monetary policy, yen-funded carry trades amid diminished investor risk aversion after releses on HSBC China February flash manufacturing PMI of 50.1 (versus forecast 49.5) and 0.2% on-month drop in U.S. January new home sales to 481,000 (versus forecast 1.7% drop to 473,000).

Technical comment:
The daily chart is mixed as stochastics is turning bearish, but five-day moving average is meandering sideways.

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 119.35 and the second target at 119.75. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 118.50. A break of this target would push the pair further downwards, and one may expect the second target at 118.25. The pivot point is at 118.80.

Resistance levels:
119.35
119.75
120
Support levels:
118.50
118.25
117.95