USD/JPY is expected to trade in a lower range. The first downside target at 120.60 is in sight. Currently, the pair is being supported by the rising 20-period moving average, which has crossed above the 50-period one, while the relative strength index stands firmly above the neutrality level of 50. With such a bearish intraday outlook, once breaking below 121.50, the pair is expected to rise further to 120.60 (a price base seen on December 14 and 15).

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 120.60. A break of that target will move the pair further downwards to 120.15. The pivot point stands at 121.50. 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, long positions are recommended with the first target at 121.75 and the second target at 122.15.

Resistance levels: 121.75 122.15 122.55

Support levels: 120.60 120.15 119.65