Early dip bought back, rate holds ranges despite an early attempt through the 108.00/10 resistance area. Volumes not that high suggesting more two-way action and bids will support. Rate grinding into offers and a rally may come overnight Monday. Equities continue to drag on the pair but support appears sold on the dip to 106.50 area.

Rate is ready to test the size of offers at the 108.00 area and beyond in my view. 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. Look to cover longs on a rally over the 108.25 area.

USD/JPY Daily

Resistance 3:  108.80
Resistance 2:  108.40/50
Resistance 1:  108.00/10
Latest New York:  107.48
Support 1:  107.20/30
Support 2:  106.80
Support 3:  106.50

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

7:50pm JPY Prelim Industrial Production m/m

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