Corrective Bounce Or Reversal?.....>

DOLLAR-YEN TECHS: Corrective Bounce Or Reversal?

*RES 4: 109.38 High Apr 6

*RES 3: 108.59 High Apr 10

*RES 2: 108.08 High Apr 16 and 17 and key resistance

*RES 1: 107.77 High May 11 and close to the the 50-day EMA

*PRICE: 107.51 @ 10:31 BST May 12

*SUP 1: 106.40 Low May 11

*SUP 2: 105.99 Low May 6 and 7 low and bear trigger

*SUP 3: 105.81 Low Mar 17

*SUP 4: 105.21 61.8% retracement of the Mar 9 - 24 rally

USDJPY rallied sharply higher yesterday and managed to breach resistance at

107.50, Mar 30 high. This has undermined the recent bearish outlook however a

close north of 108.08 is needed before indicating a reversal. Last week's breach

of 106.36, Apr 30 low reinforced bearish conditions supported by MA studies that

continue to point south. A return lower would refocus attention on objectives at

105.81, Mar 17 low and 105.21, a retracement level.