Rate continues on follow-on weakness, strong bids noted suggesting a whipsaw bounce is coming. Today’s dip under the 105.00 handle lacked conviction and a potential rally may develop early; sell that rally early next week if we get it. In the meantime, OK to liquidate shorts and wait. Exponential reversal signal still valid, rate is two-way but weaker each day.

Stops in the 105.80 area cleared overnight; traders note stops were both ways. Cot data show a flip to Yen longs suggesting a bottom is in.

USD/JPY Daily

Resistance 3:  107.80
Resistance 2:  107.20/30
Resistance 1:  106.50
Latest New York:  105.56
Support 1:  10500/104.90
Support 2:  104.50
Support 3:  104.20

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

7:50pm JPY Monetary Base y/y

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