The USD/JPY is sinking lower, making its long anticipated move outside of the March trading range. The Dollar is depreciating across the board after the Fed announced a shocking $300 Billion quantitative easing plan.

However, the Yen is experiencing the least strength as compared to other major Dollar crosses since the Japanese economy is the weakest in the world right now and the BOJ has been initiating quantitative easing of its own.

Nevertheless, investors are favoring the Yen over the Dollar due to the sheer mass of the Federal Reserve's quantitative easing balance sheet. Now that the USD/JPY has finally made a directional decision, it's safe to say the downtrend is back in full-force and the possible retest of 100 becomes a distant memory.

The reinstatement of the downtrend strikes another blow to the Japanese economy just after the USD/JPY was beginning to stabilize and gain momentum upwards. However, there is a silver lining in the fact the USD/JPY is still fighting to remain above our near-term uptrend line.

Fundamentally, we find resistances of 95.08, 95.64, 96.37, and 97.10. To the downside, we see supports of 94.57, 93.73, 93.06, and 92.39. The USD/JPY is currently exchanging at 94.16.

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