Overview:

USD/JPY is expected to trade with the bearish bias. It is undermined by the selling of yen crosses amid diminished investor risk appetite (VIX fear gauge rose 1.48% to 11.68, S&P closed down 0.11% after hitting all-time high 1,914.46 overnight) and lower U.S. Treasury yields (10-year fell to 2.434 overnight--lowest since July 3, 2013) and Japan's exporter sales. But USD/JPY losses are tempered by the demand from Japan importers and broadly stronger USD undertone (ICE spot dollar index last 80.54 versus 80.35 early Wednesday).

Technical Comment:
Daily chart is mixed as MACD is bullish, but stochastics is turning bearish.

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 101.20. A breach of this target will move the pair further downwards to 101.05. The pivot point stands at 101.90. In case the price moves in the opposite direction and bounces back from 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 102.35.

Resistance levels:
102.15
102.35
102.55

Support levels:
101.20
101.05
100.75