USD/JPY is expected to trade in a higher range. Last Friday the US dollar gained over 1% against other major currencies as the strong US jobs report, which pointed to an addition of 271K non-farm payrolls in October (vs +180K expected) and a fall in jobless rate to 5.0% from 5.1%, was viewed by the market as a green light for the US Federal Reserve to raise interest rates in December. The Wall Street Journal Dollar Index rose 1.2% to 90.42, the highest level since December 2002. EUR/USD fell 1.3% to 1.0738, GBP/USD lost another 1.0% to 1.5047, USD/JPY rose 1.1% to 123.13, USD/CAD also gained 1.1% to 1.3306, while AUD/USD lost 1.3% to 0.7046. The benchmark 10-year Treasury yield rose further to 2.332%, the highest closing level since July 21, from 2.245% in the previous session.

Meanwhile, US stock indices were little changed amid bank and financial stocks trading higher and utilities shares tumbling. The Dow Jones Industrial Average added 0.3% to 17,910, the S&P 500 ended broadly flat at 2,099, and the Nasdaq Composite was up 0.4% to 5,147. Nymex crude oil fell 2.0% to $44.29 a barrel, gold lost another 1.5% to $1,087 an ounce.The pair keeps on trading on the upside after last Friday's 1.1% surge. It is standing firmly above the rising 20-period intraday moving average (MA), which is above the 50-period one. Meanwhile, the intraday relative strength index (RSI) has shot over the over-bought level of 70 and shows no downward momentum. The intraday outlook remains strongly bullish and the pair should approach the first upside target at 123.60 and the second one at 124.00 (both last seen on August 20).

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 123.60 and the second target at 124. In the alternative scenario, short positions are recommended with the first target at 122 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 121.60. The pivot point is at 122.65.

Resistance levels: 123.60 124 124.75

Support levels: 122 121.60 122.35