Rate finds stops to drive higher but offers are massive traders say. Out of longs with nice gain; ok to reverse and short the rate but I am inclined to wait a day or so. Volumes were higher and suggest a lot of bids trying to score higher action but offers contain them.

Equities continue to drag on the pair but close above 108.00 likely to inspire more two-way action. More stops beyond above 108.50 in large size traders say.

Rate likely to attempt more gains if oil drops and equities rally. Exponential reversal signal still valid, expect more two-way action and a test of the highs. 

USD/JPY Daily

Resistance 3:  109.00/10
Resistance 2:  108.80
Resistance 1:  108.40/50
Latest New York:  108.13
Support 1:  107.20/30
Support 2:  106.80
Support 3:  106.50

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

7:15pm JPY Manufacturing PMI

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