Overview:

USD/JPY is expected to consolidate. USD/JPY is undermined by the unwinding of JPY-funded carry trades amid diminished investor risk appetite (VIX fear gauge rose 0.64% to 14.2, S&P slipped 0.05% overnight) on sluggish economic data from Asia. China reported a surprise trade deficit after its exports tumbled 18% in February from a year earlier. Meanwhile, Japan's 4Q economic growth was trimmed to 0.7% from an initial estimate of 1%. Besides, there are concerns about the crisis in Crimea. USD/JPY also weighed by lower the U.S. Treasury yields and the Japanese exports. But USD/JPY downside is limited by the demand from Japan importers, positive dollar sentiment as Friday's stronger-than-expected U.S. non-farm payrolls data continue to impact.

Technical сomment:
Daily chart is mixed as MACD is bullish, five-day moving average are above 15-day MA and is advancing, but stochastics is turning bearish at overbought zone.

Trading recommendation:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 103.7 and the second target at 104.05. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 102.80. A breach of this target will push the pair further downwards and one may expect the second target at 102.60. The pivot point is at 103.10.

Resistance levels:
103.7
104.05
104.4

Support levels:
102.8
102.6
102.30