Forex: USD/JPY

USD/JPY rally through 101.30 which was a major support for the usd/jpy for about ten years prior to the recent move to new lows. We might see some pull back to retest that support and see if usd/jpy can consolidate before rallying higher. If the support doesn't hold there might be some more downside movement in store for the usd/jpy.

The Usd/Jpy made a quick run up in the early Tokyo trade but found some resistance around 100.10-20 level.   We may see some profit taking - especially since the important Tankan report is due tomorrow evening.  The Tacken Report, measures the general business conditions of large manufacturers.  The index is derived from a quarterly survey conducted by the Bank of Japan, that asks respondents to rate subjects such as general business conditions, supply and demand conditions for products and inventories, prices, sales, and employment conditions.  It is released quarterly and watched closely by traders for important macroeconomic trends that ultimately effect the value of the JPY. 

We are seeing them test the resistance at 101.00 after breaking through the three year low just last week. It should provide some resistance in this thin market due to the holiday.

USD/JPY hit the 38.2 retracement and bounced back to the high at 103.50 we see it pulled back some to 103.20 we might see it try the downside again at 101.50.