Overview:

USD/JPY is expected to consolidate with a bearish bias. USD/JPY is underpinned by the yen-funded funded carry trades amid positive risk sentiment as U.S. stocks rose on Friday (S&P 500 hit record high 1963.91 before closing up 0.17% at 1962.87) on investor optimism over major central banks' accommodative policies, although the CBOE Volatility Index VIX rose 2.17% Friday to 10.85. USD/JPY is also supported by the demand from the Japanese importers and broadly firmer dollar undertone (ICE spot dollar index last 80.36 versus 80.32 early Friday). But USD/JPY gains are tempered by Japan's exporter sales.

Technical comment:
Daily chart is mixed as MACD is bearish, but stochastics is neutral.

Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 101.70. A breach of this target will move the pair further downwards to 101.60. The pivot point stands at 102. In case the price moves in the opposite direction and bounces back from the support level, and then it moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 102.15 and the second target at 102.30.

Resistance levels:
102.15
102.30
102.45

Support levels:
101.70
101.60
101.45