USD/JPY is expected to consolidate in a higher range as markets await the Fed monetary policy decision at 18:00 GMT. The Fed is expected to stay pat on the interest rates but market participants will scan accompanying statement and Chairwoman Yellen's comments at the press conference for clues to the further policy. USD/JPY is undermined by the lower US Treasury yields (10-year slipped 4.9 bps to 2.309% Tuesday), flows to the safe-haven yen as the Greek fears persist, and Japan's exports. But USD/JPY losses are tempered by the demand from the Japanese importers and the Bank of Japan's ultra-loose monetary policy.

Technical comment:

The daily chart is negative-biased as the MACD and stochastics are bearish.

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 124.365 and the second target at 124.65. In the alternative scenario, short positions are recommended with the first target at 122.90 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 122.45. The pivot point is at 123.35.

Resistance levels: 124.35 124.65 124.95

Support levels: 122.90 122.45 122