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USD/JPY - 111.36 Daily Market Outlook

06 Dec, 2007 @ 08:12 pm EST

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Although dollar's yesterday's breach of 111.24 due to cross selling in yen confirms the upmove from this year's low at 107.22 to retrace medium term downtrend has resumed, loss of upward momentum should prevent strong rise beyond the 112.00 level today and 112.50/60 should hold, yield pullback later.

Only a break below support at 110.63 would signal a temporary top has been formed and bring correction to 110.10/15 and possibly towards 109.56.

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