Usd/Jpy : 17Nov03 2214EST 108.73-78

Daily - We suspected that the recent down-move may not be sustainable (see previous updates).
The Daily Cycle is still near the low, Daily Acchist is holding above 0 and more importantly, MP1 is holding above its averages (always a good indication that the down-move is not sustainable).
The move higher yesterday has resulted in Daily Oschist crossing above 0 and this is an early indication that we have seen a low.
We are cautiously bullish from here, resistance are stacked closely on the way up (recall previously the Daily Oschist crossed above 0, we managed a high of 111.45-50 before reversing sharply).
Only a break of the strong support at 107.50-80 will shift the risk to the downside again.

Hourly - Cycle is near the high after the move to 109.70-75. While the rather sharp set-back is a concern, the current move appears to be a correction (Impi heading below 0). We will not rule out further drop from here but in view of the Daily view (see above), any down-move will be considered as a buying opportunity.
Strong support is at the Qrt Env-low (significant as it coincides Low-line at 108.30-35) and the Env-low at 107.95-00.

Strategy:
Daily - Average buy between 108.30 and 108.00. Stop at 107.60.