Overview:
USD/JPY is consolidating after hitting six-month high of 80.68 on Friday. The rate is underpinned by positive USD sentiment after bigger-than-expected 171,000 rise in U.S. October non-farm jobs (vs. +125,000 forecast). USD/JPY is also supported by demand from Japan importers and investment trusts. But USD/JPY upside is limited by Japan exporter sales; selling of yen crosses amid increased risk aversion (VIX fear gauge rose 5.39% to 17.59, DJIA fell 1.05% Friday) as the surprisingly high job gain fanned concerns that the Fed would rein in its easy money policies, and tip the balance in favor of President Obama in tomorrow's U.S. presidential election which may increase the political gridlock with Republican lawmakers and perpetuate the U.S. "fiscal cliff" that could throw the U.S. economy back into recession. Yen crosses are vulnerable to 01:45 GMT China October services PMI data.
Preference:
Sell below 80.55 with targets 80.1 and 79.75 in extension.
Support Levels:
80.11 (Friday's low)
79.76 (Thursday's low)
79.51 (Wednesday's low)  
Alternative scenario:
Buy above 80.55. Above 80.55 look for further upside with 80.68 and 81 as targets.
Resistance Levels:
80.68 (Friday's high)
81.00
81.20  
Technical Comment:
The pair has broken below its bullish channel lower boundary and remains under pressure. The USD/JPY daily chart is positive-biased as MACD & stochastics are bullish, although latter is at overbought; five- & 15-day moving averages are rising.