USD/JPY is expected to trade with bullish bias above 122.65. Overnight, US stock indices declined slightly dragged by energy shares, as Nymex crude oil dropped 2.9% to $42.93 a barrel. The Dow Jones Industrial Average fell 0.3% to 17,702, the S&P 500 slipped 0.3% to 2,075, while the Nasdaq Composite was also down 0.3% to 5,067. Gold fell 0.3% further to $1,085 an ounce, while the benchmark 10-year Treasury yield edged up to 2.343% from 2.322% in the previous session.

Meanwhile, the US dollar edged down a bit as traders took profits on recent gains ahead of speeches by Federal Reserve Chairwoman Janet Yellen and Vice Chairman Stanley Fischer scheduled for today. earlier today, AUD/USD surged over 1.1% to about 0.7140 as Australia's jobless rate declined to 5.9% in October (vs 6.2% expected) from 6.2% in September. The pair keeps trading above the key support at 122.65. Currently, it is capped by the descending 20-period intraday moving averages (MA), and the intraday relative strength index (RSI) is now below the neutrality level at 50, calling for a continuation of the consolidation. If the pair breaks out from the consolidation to the upside, the next upside resistance should be 123.20 (around yesterday's high).

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 123.60 and the second target at 124. In the alternative scenario, short positions are recommended with the first target at 122 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 121.60. The pivot point is at 122.65.

Resistance levels: 123.60 124 124.75

Support levels: 122 121.60 122.35