$USDJPY Morning Commentary

$USDJPY closed higher due to short covering on Friday as it consolidates some of the decline off September's high. The high-range close sets the stage for a steady to higher opening when Monday's night session begins trading. 

Stochastics and the RSI are diverging but are bearish signaling that additional weakness is possible near-term. If March extends the decline off September's high, monthly support crossing at .11879 is the next downside target. Closes above the 20-day moving average crossing at .12162 are needed to confirm that a short-term top has been posted. 

First resistance is the 20-day moving average crossing at .12162. 

Second resistance is the reaction high crossing at .12253. 

First support is today's low crossing at .11920. 

Second support is monthly support crossing at .11879.