Fundamental overview:

USD/JPY is expected to trade in a lower range. It is underpinned by the broadly firmer dollar undertone (ICE spot dollar index last 88.30 versus 88.00 early Friday) as oil prices extend falls Friday to four-and-a-half year lows following OPEC's decision to stick to its existing target for oil production. USD/JPY is also supported by the demand from Japan's importers and the weak yen sentiment as Japan's adjusted core CPI fell to 0.9% in October from 1.0% in September, moving further away from the 2.0% level targeted by the Bank of Japan and bolstering expectations for additional monetary easing by the central bank. But USD/JPY gains are tempered by Japan's exporter sales, diminished investor risk appetite (VIX fear gauge rose 10.44% to 13.33, S&P 500 closed 0.25% lower at 2,067.56 Friday) and lower U.S. Treasury yields (10-year at 2.196% versus 2.234% late Wednesday).

Technical comment:
Daily chart is positive-biased as stochastics stays elevated at overbought levels, five and 15-day moving averages are advancing.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 117.60. A break of this target will move the pair further downwards to 117. The pivot point stands at 118.55. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 118.90 and the second target at 119.30.

Resistance levels:
118.90
119.30
119.75

Support levels:
117.60
117
116.65