Rate makes one more high into resistance generating a strong sell signal. Look for the rate to fall on the news but intraday volatility likely. Double-top remains strong sell signal suggests resistance area is getting thicker. Traders note that the market continues to trade technically and expect stops to be run in both directions near-term; look for close-in stops under the 104.50 area today.

Continue to expect more volatility. Looking for the rate to briefly follow through higher for a short-covering rally through Tuesday but fall harder into mid week; likely under the 103.00 handle.

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. Stops could be in size at the 102.50/80 area.

Resistance at 105.50 area remains significant now and rallies should be sold. Traders looking for a struggle to get over the 105.50 area.

USD/JPY Technical View

Resistance 3: 106.00
Resistance 2: 105.80
Resistance 1: 105.50
Latest New York: 105.21
Support 1: 104.60
Support 2: 104.20/30
Support 3: 103.80

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

7:50pm JPY GDP q/q 0.6%
7:50pm JPY GDP Deflator y/y-1.5%

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com