Volumes died back to zero once the Bernanke comments were out; lack of follow-through suggests a total head-fake for the longs. Hold shorts—nothing to do but wait as the bulls run for the exits. Expect lots of two-way action and the rate is likely to cover a lot of the same ground twice the next 24-48 hours.

This week’s data may be largely ignored until NFP out later in the week. Rate is probing for stops on the other side of the 104.00 handle and first attempt cleared them all as the rate topped 105.20. Longs likely rolling stops up underneath close-in so expect volatility later today.

USD/JPY Daily

Resistance 3:  105.80
Resistance 2:  105.50/60
Resistance 1:  105.30
Latest New York:  105.20
Support 1:  104.20/30
Support 2:  103.70/80
Support 3:  103.40/50

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

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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