The USD/JPY is expected to trade in a higher range as a bias remains bullish. Last Friday, the US stocks settled higher boosted by health-care, consumer discretionary, and technology shares. The Dow Jones Industrial Average rose 0.5% to 17823, the S&P 500 gained 0.4% to 2089, and the Nasdaq Composite was 0.6% up to 5104. Nymex crude oil dropped 0.4% to $40.39 a barrel, and gold was 0.4% down to $1077 an ounce. Meanwhile, the benchmark 10-year Treasury yield settled at 2.264%, up from 2.246% in the previous session.

The US dollar broadly gained against most of other major currencies, with the Wall Street Journal Dollar Index climbing by 0.3% to 90.31 and hovering near a 13-year high. EUR/USD declined 0.8% to $1.0643 as European Central Bank President Mario Draghi reiterated that the central bank stands ready to use all available options as early as its December 3 meeting to boost inflation in the region. The pair has entered a consolidation after reaching as high as 123 last Friday. It is currently finding support at the 50-period moving average. And the 20-period moving average remains above the 50-period one. As long as 122.85 holds as the key support, the consolidation's extent is expected to be limited. If the pair takes back the first upside target at 123.40, it should rise further towards 123.60 (a high of October 26).

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 123.40 and the second target at 123.60. In the alternative scenario, short positions are recommended with the first target at 122.70 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 122.55. The pivot point is at 122.85.

Resistance levels: 123.40 123.60 124

Support levels: 122.70 122.55 122