USD/JPY is turning down. Last Friday, US stocks ended mixed as earlier gains were cut by a selloff in the biotechnology sector. The Dow Jones Industrial Average ended 0.7% higher at 16315, after gaining 1.6% earlier in the session. On the other hand, the S&P 500 fell 0.1% to 1931 and the Nasdaq Composite was down 1.0% at 4686. Nymex crude gained 1.5% to $45.58 a barrel, gold lost 0.7% to $1,146 an ounce, while the 10-year Treasury yield climbed to 2.167% from 2.125% in the previous session. Meanwhile, the US dollar remained stable against the most major currencies as Federal Reserve Chairwoman Janet Yellen hinted that the interest rate hike in 2015 is still alive and well. Besides, the US government reported that the 2Q GDP grew to a 3.9% seasonally adjusted annual rate, up from 3.7% previously estimated. USD/JPY shot up to 121.23 last Friday before entering a consolidation zone.The pair has broken its previous key support and remained on the downside. It is trading below both the 20- and 50-period intraday moving averages (MAs). Meanwhile, the intraday relative strength indicator (RSI) is below the neutrality level of 50 and capped by a declining trend line. The intraday outlook has turned bearish. As long as 120.65 holds as the key resistance, the pair is expected to fall towards the first downside target at 120 and the second one at 119.85.

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 182. A breakout of that target will move the pair further downwards to 181.60. The pivot point stands at 183.85. 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 move further to the upside. According to that scenario, long positions are recommended with the first target at 184.75 and the second target at 185.30.

Resistance levels: 1120.90 121.25 121.65

Support levels: 120 119.85 119.45