We will maintain a negative bias towards this pair, and it is enough to take a look at the attached chart to know the reason why. Dollar-Yen is currently trading below the rising trend line on the hourly chart, and it is vulnerable to a big drop. We explained in the last two reports the importance of Friday’s closing, 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 place our focus on the broken trend line which is currently at 92.40, 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 91.70. Breaking the resistance 92.40 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 91.70 would open the way to a drop towar ds 90.76 & 89.79.
 
Support:

• 91.70: the moving average SMA100 on the hourly chart.

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

• 89.79: Fibonacci 61.8% for the whole rise from 87.35 to 93.75.
 
Resistance:

• 92.40: the retest level for the broken trend line on the hourly chart.

• 94.05: Aug 28th high.

• 94.62: Jan 6th 2008 high.