USD/JPY is expected to consolidate with a bullish bias. It is undermined by lower US treasury yields (10-year fell 8.4 bps to 2.267% Friday) and Japan's exports. But USD/JPY downside is limited by demand from Japanese importers, ultra-loose Bank of Japan's monetary policy, and reduced safe-haven appeal of the yen amid speculation that new proposals from Greek officials expected to be accepted.

Technical comment:

The daily chart is still negative-biased as the MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining.

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 123.70 and the second target at 124.10. In the alternative scenario, short positions are recommended with the first target at 122.45 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 122.15. The pivot point is at 122.80.

Resistance levels: 123.70 124.10 124.35

Support levels: 122.45 122.15 121.75