Stable, But Vulnerable *RES 3:.....>

DOLLAR-YEN TECHS: Stable, But Vulnerable

*RES 3: 109.73 High Dec 2 and key resistance

*RES 2: 109.50 High Dec 30

*RES 1: 108.87 High Jan 2

*PRICE: 108.35 @ 16:21 GMT Jan 6

*SUP 1: 107.77 Intraday low

*SUP 2: 107.72 38.2% retracement of the Aug 26 - Dec 2 rally

*SUP 3: 107.10 50% retracement of the Aug 26 - Dec 2 rally

Despite Monday's intraday stabilisation, the pair remains vulnerable to setbacks

after clearing support last week at 108.43, the Dec 4 low and 108.24, Nov 14

low. This further reinforces the developing short-term bearish threat.

Furthermore, support at 107.89, the Nov 1 low is also under pressure. A clear

breach of this level would expose 107.72 and 107.10, both retracement levels.

Near-term resistance has been defined at 108.87, Jan 2 high where a break is

required to ease the current downward cycle.