USD/JPY is expected to trade with a bearish bias. It is undermined by flows to haven yen and unwinding of JPY-funded carry trades amid increased risk aversion as projection of Greece's referendum outcome indicated most Greeks voted "no" to creditors' demands, heightening fears of an eventual Greek exit from the eurozone. USD/JPY is also weighed by the lower US treasury yields and Japan's exports. But USD/JPY losses are tempered by demand from Japanese importers and ultra-loose Bank of Japan's monetary policy.

Technical comment:

The daily chart is negative-biased as the MACD is in bearish mode, stochastics is turning bearish, five and 15-day moving averages are declining.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 122.15. A break of that target will move the pair further downwards to 121.80. The pivot point stands at 123. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to mo ve further to the upside. According to that scenario, long positions are recommended with the first target at 123.35 and the second target at 124.

Resistance levels: 123.35 124 124.50

Support levels: 122.15 121.80 121.25