Overview:

USD/JPY is expected to consolidate after hitting four-day low at 102.55 on Wednesday. It is undermined by the broadly weaker dollar undertone (ICE spot dollar index last 79.60 versus 79.80 early Wednesday),lower U.S. Treasury yields and Japan export sales. But the USD/JPY losses are tempered by the demand from Japan importers, loose monetary policy of the Bank of Japan, buying of yen crosses amid receding investor risk aversion (VIX fear gauge fell 2.23% to 14.47, S&P rose 0.03% overnight) even as the turmoil in Ukraine roils, as speculation increase over further monetary easing in China such as cutting the reserve requirement ratio for banks ; if there were more signs of slowing growth.

Technical сomment:
Daily chart is mixed as MACD is bullish, but stochastics is falling from overbought zone.

Trading recommendation:

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 102.2. A breach of this target will move the pair further downwards to 102. The pivot point stands at 102.90. In case the price moves in the opposite direction, bounces back from support level, and then moves 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 102.20 and the second target at 102.

Resistance levels:
103.15
103.40
103.60

Support levels:
102.2
102
101.75