USD/JPY rose to three-day high of 124.15 in early U.S. trading on general dollar strength. Technicians also noted support from both the 60-day and the 100-day moving averages.
The Japanese economic data was mixed, but several figures suggested some rare optimism.
Trade surplus in June fell 36.1% from a year earlier to 761.7 billion yen, but the surplus was above private economists' average expectation of 757 billion yen. The surplus declined for the 12th straight month, the finance ministry said.
The seasonally adjusted index of consumer confidence rose to 40.9 in June from 40.2 in March, according to a survey released by the Cabinet Office. This index indicated Japanese consumers were more confident about economic conditions in June than they had been in March. Consumer confidence improved in June, after it had fallen in the previous two surveys.
The index of activity in Japan's service industry--which accounts for 60% of Japan's economy--rose 0.4% on the month on a seasonally adjusted basis in May, after it showed a revised 2.4% drop in April, the Ministry of Economy, Trade and Industry (METI) has announced. A METI official said activity in the service industry is "in a gradual rising trend."
Heizo Takenaka, Minister of State for Fiscal and Economic Policy, said on Monday the recent falls in the TOPIX stock index were triggered by stocks relating to IT and banking industries, which accounts for about one-third of the overall TOPIX components. But the remaining two-thirds of the components have not declined, and it is important for Japan to continue economic structural reform, including bad loan write-offs, he said.
The intraday outlook is slightly bullish if the pair can stay above the 124.00 Gann 50-point pivot, which targets 123.50 and 124.50.

Support: 122.95 (overnight low), 122.71 (60-day moving average), 122.70 (July 20 trough), 122.50 (Gann 50-point pivot; targets: 122.00/123.00), 121.05 (Gann 50-point pivot; targets: 120.55/121.55).
Resistance: 124.00 (Gann 50-point pivot; targets: 123.50/124.50), 124.15 (overnight high), 125.50 (Gann 50-point pivot; targets: 125.00/126.00), 124.52 (20-day moving average), 126.15 (July 6 high; 3-month high), 126.84 (April 2 high; 29-month high), 127.00 (Gann 50-point pivot; targets: 126.50/127.50).

Weighed by the soft Ifo reading, an FX-neutral G8 meeting and the inability last week to break above the 0.8790 38.2% Fibonacci retracement level of the June-October downtrend, EUR/USD sank to a five-day low of 0.8665.
Traders ignored evidence of receding inflation in the euro zone since it still remained above the ECB target, thus limiting the odds that the central bank would cut rates before the third quarter to boost its economy. Inflation rose by 0.1% in German state of North Rhine Westphalia in July, to give an annual inflation rate of 2.6%, lower than forecasts that prices would rise by 0.2%, to give an annual inflation rate of 2.7%.
The intraday outlook is slightly bearish, with pivotal support at 0.8556 from 20-day moving average.

Support: 0.8665 (overnight low), 0.8556 (20-day moving average), 0.8350 (July 6 low; 7-month low).
Resistance: 0.8728 (overnight high), 0.8790 (July 19 peak), 0.8790 (38.2% Fibonacci retracement level of the June-October downtrend), 0.8848 (61.8% Fibonacci retracement level of the Nov. 27-Jan. 5 uptrend), 0.8875 (200-day moving average).

EUR/JPY consolidated within recent ranges. The cross currency remains resisted by the 100-day moving average at 107.66. Support is seen at 106.55 from the 20-day moving average.
The outlook is mixed.

Support: 106.55 (overnight low), 106.55 (20-day moving average), 105.83 (60-day moving average), 105.80 (38.2% Fibonacci retracement level of May 1999-October 2000 downtrend), 104.54 (June 20 low), 104.68 (200-day moving average).
Resistance: 107.66 (100-day moving average), 107.67 (overnight high), 108.60 (July 18 high), 109.72 (May 16 high; top of consolidation area), 111.02 (50% Fibonacci retracement level of May 1999-October 2000 downtrend).

GBP/USD fell below the 100-day moving average at 1.4236 on its way to a 3-day low of 1.4210. Traders are liquidating long positions after cable peaked Friday at 1.4349.
The economic data didn't help GBP/USD.
U.K. economic growth in 2001 will slow to around 1.8% this year, the Ernst & Young ITEM Club forecast Monday. ITEM, which uses the Treasury's own model of the economy to produce its forecasts, said the growth would slow due to the weakness of world markets and the strength of the pound.
The outlook is bearish.

Support: 1.4210 (overnight low), 1.4142 (60-day moving average), 1.4118 (20-day moving average), 1.3911 (June 20 low), 1.3688 (June 12 low; 15 1/2-year low), 1.3660 (February 1986 trough).
Resistance: 1.4236 (100-day moving average), 1.4270 (overnight high), 1.4349 (July 20 peak), 1.4414 (May 21 peak).