Takes Flight

• RES 4: 106.71 50% February - March Sell-off
• RES 3: 106.11 High Oct 8
• RES 2: 105.75 High Oct 20
• RES 1: 105.65 High Nov 9
• PRICE: 105.60 @ 17:03 GMT Nov 9
• SUP 1: 103.18/09 Low Nov 6 / Low Mar 12
• SUP 2: 102.02 Low Mar 10
• SUP 3: 101.32 Bear channel base drawn off the Mar 24 high
• SUP 4: 101.19 Low Mar 9 and major support

USDJPY shot sharply higher Monday, rallying smartly through all near-term resistance to hit an intraday high at 105.65, the highest level since Oct20. The sharp bounce counters the bearish conditions that dominated at the tail-end of last week - and opens progress toward the 100-dma at 105.89 and the early October highs of 106.11. For the downside argument to re-establish itself, markets need to prevent a close above the 50-dma at 105.28.