USD/JPY is expected to consolidate with a bearish bias after hitting two-week low 122.46 on Wednesday. It is undermined by bullish yen sentiment after Bank of Japan Governor Kuroda's speech. USD/JPY is also weighed by Japan's exports. But USD/JPY losses are tempered by higher US Treasury yields (10-year rose 6.8 bps 2.485% Wednesday), positive investor risk sentiment (VIX fear gauge eased 8.64% to 13.22; S&P 500 closed up 1.2% at 2,105.2 overnight), reports suggesting Greece and its creditors were inching closer to a bailout compromise, demand from Japanese importers, and ultra-loose Bank of Japan's monetary policy.

Technical comment: The daily chart is negative-biased as stochastic is falling from overbought levels, the MACD staged bearish crossover against its exponential moving average.

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 122.90. A break of that target will move the pair further downwards to 122.45. The pivot point stands at 124.10. 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 124.65 and the second target at 124.95.

Resistance levels: 124.65 124.95 125.35

Support levels: 122.90 122.45 122