Rate whipsaws around current S/R; unable to gain traction above or below recent boundaries.  Volumes lighter and upside resistance is firm at 108.00 area or a shade higher. Failure to close above the 108.00 handle Monday a good sign rate is ready to break back to the lows looking for stops under the 107.10/107.00 area.

Exponential reversal signal still valid, rate is two-way but weaker each day. If short—let it work. If today’s rally fails under the 108.00 handle look for a drop into stops under the 107.00/10 area the next 24 hours. Look to add if rate can hit the stops in the 107.00 area near-term.

Some topping seen; expect volatility. USD likely not this strong but more benefiting from Yen weakness. Stops likely rolled up under the 107.00 area for today so if a break happens—look for a drop to the 106.00 handle fairly quickly.

USD/JPY Daily

Resistance 3:  108.80
Resistance 2:  108.50
Resistance 1:  108.20
Latest New York:  107.76
Support 1:  107.20/30
Support 2:  107.00
Support 3:  106.80

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

NONE

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