USD/JPY is expected to consolidate with a bullish bias after hitting a near-13-year high at 125.86 on Friday. It is underpinned by the positive dollar sentiment (ICE spot dollar index last 96.40 versus 95.69 early Friday) after bigger-than-expected 280,000 increase in U.S. May non-farm payrolls (versus forecast +225,000), more-than-expected 0.3% on-month rise in U.S. May average hourly earnings (versus forecast +0.2%), although U.S. May unemployment rate came in higher-than-expected at 5.5% (versus forecast 5.4%). USD/JPY is also supported by larger-than-expected $20.54 billion increase in U.S. April consumer credit (versus forecast +$16.0 billion), higher U.S. Treasury yields (10-year rose 9.3 bps to 2.400% Friday) as well as demand from Japan's importers and ultra-loose Bank of Japan's monetary policy. But USD/JPY gains are tempered by Japan's exports.

Technical comment: The daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought levels, five- and 15-day moving averages are advancing.

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 124.15 and the second target at 123.60. In the alternative scenario, short positions are recommended with the first target at 124.15 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 126.35. The pivot point is at 124.55.

Resistance levels: 125.95 126.35 126.75

Support levels: 124.15 123.60 122.90