USD/JPY Daily

Resistance 3: 105.00

Resistance 2: 104.80

Resistance 1: 104.20/30

Latest New York: 104.00

Support 1: 103.50/60

Support 2: 103.20/30

Support 3: 103.00

Other Things to Watch/Open Trades/News

Still Flat but aggressive traders can sell on a test

of the 105.00 area;

Looking at the sell side early this week.

Comments

Extra effort by the bulls cleans out stops and makes the 105.00 area in view now.

Don’t expect a rally over the 105.00 area to last, need a failure on good volume but

rate continues to trade firm; no failure on Friday sets the tone for a test of 105.00

today at some point.

Traders note that the market is still trading technically and expect stops to be run in

both directions near-term; expect some volatility. Day traders may get a lot of

opportunity as the rate will likely cover a lot of the same ground twice on the hourly time

frame.

With rate back under the 104.00 handle expect a bounce from the 103.20/30 area if

stops accelerate the move; look to sell that bounce the next 48 hours.

Data due Wednesday All times EASTERN (-5 GMT) Forecast Last

1:00am JPY Housing Starts y/y -6.5% -5.0%

Tentative JPY BOJ Governor Shirakawa Speaks

2:00am JPY BOJ Monthly Report

Analysis by: Forexpros.com written by Jason Alan Jankovsky

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