Overview:

USD/JPY is expected to trade in a higher range. It is supported by the broadly firmer USD undertone (ICE spot dollar index last 80.56 versus 80.51 early Monday) as the greenback benefited from haven flows amid the geopolitical concerns as the West threatened further international sanctions on Russia over the Ukraine conflict. Besides, violence is unfolding in the Middle East. USD/JPY is also buoyed by the higher shorter-dated U.S. Treasury yields and demand from Japanese importers. But the USD sentiment are dented by the drop in Chicago Fed National Activity Index to +0.12 in June from May's +0.16. USD/JPY gains are also tempered by the Japanese export sales and flows to haven JPY amid increasing risk aversion.

Technical comment:
The daily chart is mixed as MACD is bearish, but stochastics is turning bullish near the oversold zone.

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 101.80 and the second target at 102. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 101.05. A break of this target would push the pair further downwards and one may expect the second target at 100.85. The pivot point is at 101.25.

Resistance levels:
101.80
102
102.20

Support levels:
101.05
100.80
100.60