Rate broke into stops under the 104.20 area but no one was home and the rate recovered after the move. Not likely to see further weakness without an attempt at a rally in my view. Monday’s close leaves a doubt to the potential; expect lot’s of two-way action and the rate is likely to cover a lot of the same ground twice the next 24-48 hours.

Stops the other side of 105.80 are in size suggesting that speculators got heavily short last week. This week’s data may be largely ignored until NFP out later in the week.  

Look for stops to be raised up by the longs this week and some should be resting under today’s lows around the 104.50 area (likely cleared with today’s drop)

USD/JPY Daily

Resistance 3:  105.50
Resistance 2:  105.20
Resistance 1:  104.80
Latest New York:  104.49
Support 1:  104.00
Support 2:  103.70/80
Support 3:  103.40/50

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

9:00am JPY BOJ Governor Shirakawa Speaks
7:50pm JPY Capital Spending q/q -9.6%

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