Good volatility to begin the day today. As pointed out yesterday, my sytstem showed that there would be a strong 100 pip up move in the GBPJPY it did go to 240.85....I feel that it might move up some more today as well. But lot of important news releasing today and so it is better to watch out. One very important thing to note is the huge divergence between EURJPY and GBPJPY with one pair being strong and the other pair being very weak. So long, both these pairs were trading very close to each other and following each other but now we have this divergence. A sign of changing market dynamics!! Below are the supports and resistances for the JPY crosses for today:-

USDJPY - Important support at 121.5. If that is broken, next support is at 121.10 which is a very strong support and the final major support is at 120.70. On the topside, the resistance is at 121.88 and then at 122.10. The supports and resistances have been staying the same for the past 2 days as the pair is ranging a lot.

EURJPY - Important support at 161.70. If that is broken, next support is at 161.45 and the final major support is at 161.10. On the topside, the resistance is at 162.10 and then at 162.50.

GBPJPY - Important support at 239.80. If that is broken, next support is at 239.10 and the final major support is at 238.42. On the topside, the resistance is at 240.70 and then a major resistance at 241.25.

Lets hope for a good day for the longs today..

Happy Trading !!!