Updating time : 30/01/2008 23:55 GMT

USD/JPY - 106.17...Dollar rose to 107.47 y'day following the release of stronger-than-expected U.S. ADP employment data n retreated, despite staging a brief recovery immediately following the Fed's 50 basis point rate cut, the greenback then fell sharply on active cross buying in yen (unwinding of carry trades) due to the decline in U.S. stock markets.

Y'day's cross-inspired selloff signals the decline fm 107.90 (Jan 25) has resumed n re-test of prev. sup at 106.00 (Jan 28) is seen after consolidation, below there wud yield further weakness twds 105.57/61 (equality proj. of 107.90-106.00 fm 107.47 n Jan 22 low) but as hourly oscillators are likely to be in o/sold territory on such a move, reckon this month's low at 104.95 wud hold on 1st testing. Looking ahead, below 104.95 wud extend MT downtrend fm 124.14 (June '07) to 104.20, being 61.8 proj. of 124.14-107.22 fm 114.66.

Therefore, selling on recovery is favoured but profit shud be taken on next fall. Abv minor res at 107.07 wud prolong recent 'choppy' sideways trading abv 104.95 low n risk another rebound twds 107.47 but 107.90 shud hold...