Fundamental overview:
USD/JPY is expected to trade in a higher range. It is supported by the reduced safe-haven appeal of the yen amid diminished risk aversion (VIX fear gauge eased 6.84% to 15.52; S&P 500 rose 0.26% to close at 2,057.09 overnight) as investors took the victory of the Greek leftish party Syriza in their stride. Investors speculate it will pursue its anti-austerity agenda without Greece leaving the eurozone, while prospect of the European Central Bank making monthly bond purchases of €60 billion continued to buoy risk sentiment. USD/JPY is also supported by the higher U.S. Treasury yields (2-year at 0.519% versus 0.499% late Friday), and demand from Japan's importers, and ultraloose the Bank of Japan's monetary policy. But USD/JPY gains are tempered by the Japanese exports and softer USD sentiment (ICE spot dollar index last 94.97 versus 95.32 early Monday) as the Dallas Fed business activity index fell to -4.4 in January from +3.5 in December. The gains are also restrained by the caution ahead of the Federal Reserve's monetary decision on Wednesday.

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

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 118.85 and the second target at 119.35. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 117.20. A break of this target would push the pair further downwards and one may expect the second target at 116.80. The pivot point is at 117.50.

Resistance levels:
118.85
119.35
119.75

Support levels:
17.20
116.80
116.50