The USD/JPY pair initially tried to rally during the session on Monday, but gave back most of the gains as the market is just simply far too overbought at this point to continue the kind of momentum that it had. The 110 level above is significantly resistance, and as a result we think that the markets need to pull back in order to build up enough momentum to actually break out. With that, we think that the pullback is coming, but we need to find support below before we get involved. 107 is a prime candidate for a nice entry point.
