Although it has reached 93.75, the Dollar-Yen has closed obviously on the negative side, below the important trend line on the daily charts. The price broke the support specified in Friday’s report, and successfully reached the first suggested target 92.20. We have explained the importance of Friday’s closing in the last report, and said that closing above or below 93.35 leads to completely different readings: a negative one and a positive one. The closing price came clearly below 93.35 (Fridays close 92.62), which can be read without hesitation as a negative closing. Today, we will be on the watch for this line which is currently at 93.11, and we will take a negative bias towards this pair as long as we are below this most important resistance for the time being. Support is at 92.20 (and as this report is being prepared we are trading only pips above it). Breaking the resistance 93.11 will be surprising to us, and will give the needed strength to reach areas beyond 94, most important of which are 94.05 & 94.62. While a break of the support 92.20 would open the way to a drop towards 91.51 & 90.76.
 
Support:

• 92.20: Fibonacci 61.8% for the short term.

• 91.51: obvious resistance area on the hourly chart.

• 93.12: Fibonacci 61.8% for the whole rise from 88.91 to 93.75.
 
Resistance:

• 93.11: the falling trend line from 101.43 on the daily charts.

• 94.05: Aug 28th high.

• 94.62: Jan 6th 2008 high.