Stops drive the rate lower but the recovery off the low prints is a caution to bears. Upside will be labored now in my view but be nimble on shorts; ok to add to the rate on further losses. Conviction of the sellers being challenged but I think the weak hands are the longs as the volumes are increasing on the breaks and lighter on the rallies.

Look for the rate to continue sideways today. Traders note that the market continues to trade technically and expect stops to be run in both directions near-term; close-in stops under the 103.50 area likely in size today.

Day traders continue to get a lot of opportunity as the rate will likely cover a lot of the same ground twice on the hourly time frame. Stops could be in size at the 102.50/80 area also but active selling needed. Resistance at 104.50 area remains significant now and rallies should be sold.

USD/JPY Daily

Resistance 3:  105.00
Resistance 2:  104.80
Resistance 1:  104.50/60
Latest New York:  104.05
Support 1:  103.60
Support 2:  103.20/30
Support 3:  103.00

Data due Tuesday: All times EASTERN (-5 GMT)

7:50pm JPY Tertiary Industry Activity Index m/m 0.5%
Tentative JPY Overnight Call Rate 0.50%