The Dollar-Yen broke the rising trend line from 89.61, and the support specified in yesterday's report 90.33, dropped to 89.81, without being able to go lower than Thursday's low 89.74. This morning the price came back to test the broken trend line (please refer to the attached chart).

But we believe, even if the price came back over the broken line, the technical outlook will not turn positive, since we are still below 90.78. Last week, we adjusted the lines that frame the current area, to make the upper limit at Monday's & Thursday's top 90.78, which is very close to last Wednesday's top 90.80, and close to Friday's top 90.70. In case we break the magnetic resistance 90.78 we will see the Dollar take control, and drive this pair higher, as we see it targeting the important 91.60 first, then 92.31 which is important as well. But in case we break the nearby support 90.23, drifting away from 90.78 will actually start, and we will be on the way to target 89.37 & 88.53.

Support:

* 90.23: important intraday support.

* 89.37: Mar 2nd low

* 88.53: Feb 4th low.

Resistance:

* 90.78: Monday's high.

* 91.60: Oct 29th high.

* 92.31: Oct 27th high.