The USD opens the week on a softer note and remains under light pressure at the start of New York trade. Overnight action was subdued with most of the action contained in Yen cross spreads after the release of Japan's Tankan report; traders note that the report was very soft and below forecasts prompting some analysts to expect the BOJ to cut interest rates at some point soon. With rates at .3% from the BOJ it is difficult to expect that a rate cut would help much as the bank has held effectively a zero-rate policy since the 1990's; USD/JPY is lower at 90.74 with highs at 91.37 and lows at 90.47 making for an inside range day with lower two-way action.

Rate continues to hold above previous support. Spillover from GBP helps hold the rate above support at 1.2950 area but lack of follow-through above 1.3050 a caution to the bulls. Buyers are willing on dips. Possible reversal now in play but the rate needs to firm above the 1.3050 area now that stops are cleared in my view.

Bids seen on dips traders say. Dips likely to be bought hard now that sellers couldn't make a stand over 1.3000 with confidence on the third try this week; stops at 1.3080 and above likely the next target. Aggressive traders can ADD to open longs again.

Despite rally in EURO rate holds near opening levels, firms after yesterday's drop. Rate continues to hold support at 1.4740. More upside now due within 24 hours if dips continue to be bought above the 1.4720 area. Close near the 1.4850 area or above will confirm willing buyers on the dips; might have to wait for tomorrow.

Aggressive traders can look to ADD to open longs anytime looking for a push through and a close back above 1.5000. Some spillover from EURO likely. Good bids reported but supply seen from semi-official names overnight.

The USD lost ground today after a mixed open this morning; traders note that volumes remained lighter but there was no doubt which side the orders were on. After a slightly higher open in Equities this morning the prospects for the USD tracked the rise and fall in Equities during the day; turning lower into mid-day stocks posted losses before recovering to trade back through the opening range. The majors tracked the rise and fall through the day ultimately to end better on the day but off the traded highs.

Rate continues to hold at support. Spillover from GBP helps hold the rate above support at 1.2800/10 area. Buyers are willing on dips. Possible reversal now in play but the rate needs to firm above the 1.2850 area in my view. Bids are likely building under the 1.2800 area now as expected; stops cleared near-term.

Dips likely to be bought hard now that sellers couldn't make a stand over 1.3000 with confidence on the first try; a test of stops at 1.3030 likely. Aggressive traders can ADD to open longs again. Stops building above the market around the 1.2950/60 area cleared so if sellers are active they may place them there again.

Rate extends losses to make a test of lows; then rallies to test resistance. Support at 1.4720/30 area holds after stops cleared; rate is holding 1.4740 to close. More upside now due within 24 hours if dips continue to be bought above the 1.4720 area.

Close back near the 1.4850 area will confirm willing buyers on the dips. Aggressive traders can look to ADD to open longs anytime looking for a push through and a close back above 1.5000. Some spillover from EURO likely. Good bids reported but supply seen from semi-official names overnight.