Fundamental overview:
USD/JPY is expected to trade with bearish bias. It is undermined by the flows to the safe haven yen and unwinding of of the yen-funded carry trades amid increased risk aversion on news that Greece's talks with its creditors on the future of its bailout program have broken down. USD/JPY is also weighed by the Japanese exports and mounting speculation that the Bank of Japan will not ease monetary policy further. But the USD/JPY losses are tempered by demand from Japan's importers.
Technical comment:
The daily chart is mixed as the MACD is bullish, but stochastics is falling from overbought levels.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 118.25. A break of this target will move the pair further downward to 117.95. The pivot point stands at 119.20. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 119.75 and the second target at 120.20.
Resistance levels:
119.75
120.20
120.70
Support levels:
118.25
117.95
117.65
