Updating time : 10/07/2008 23:35 GMT


USD/JPY - 107.08...Although the pair rebounded to 107.45 y'day at U.S.opening, price quickly retreated due to dlr's weakness across the board in U.S. session as U.S. stocks pared intra-day gains on concerns that Fannie Mae and Freddie Mac (mortgage finance 'giants') wud be unable to raise capital.

Looking at the hourly chart, y'day's retreat fm 107.45 suggests 'choppy' trading below this week's high at 107.75 wud continue (21-hr n 55-hr emas are now moving horizontally) n below 106.67/79 wud yield weakness twds prev. sup at 106.25, however, reckon 105.77/80 (sup n 70.7% r of 104.99-107.75) wud contain downside n bring rebound later.

On the upside, abv y'day's high at 107.45 wud yield re-test of res area at 107.66/75 but break is needed to signal erratic rise fm 104.99 has resumed, bring further headway to 107.96 (61.8% projection of 104.99-107.75 measured fm 106.25) n then twds 108.19, however, only breach of daily res at 108.59 wud extend the rise fm this year's low at 95.77 to 109.00 n 109.48 (61.8% r of 117.95-95.77) later this month...