USD/JPY fell overnight from a 4-day high of 121.83 on position adjustment and as the Tokyo stock market raced ahead with broad-based buying following an as-expected speech by Japan's Prime Minister Koizumi. Koizumi said that the Japanese government would solve the country's bad-loan problems in a few years, and promised the government would aim to build a competitive economic system and work on structural reform of the budget.
He added he would like to have a 30 trillion cap for the issue of the JGB.
Koizumi also said he wants to mull privatizing the postal system. Meanwhile, Japan's Minister of State for Fiscal and Economic Policy Heizo Takenaka said U.S. officials are basically optimistic about the future of their economy.
The outlook is mixed, with pair likely to consolidate around the 60-day moving average at 121.20. Support comes at 121.05 from a Gann 50-point pivot that targets 120.55 and 121.55, and at Friday's 120.53 trough.

Support: 121.20 (60-day moving average), 121.14 (overnight low), 121.05 (Gann 50-point pivot; targets: 120.55/121.55), 120.53 (May 4 low), 119.65 (Gann 50-point pivot; targets: 119.15/120.15), 119.00 (38.2% Fibonacci retracement level of the August 1998-December 1999 downtrend).
Resistance: 121.83 (overnight high), 122.50 (Gann 50-point pivot; targets: 122.00/123.00), 122.69 (20-day moving average), 124.00 (Gann 50-point pivot; targets: 123.50/124.50), 124.35 (April 27 peak).