Dollar/Yen broke the resistance specified in yesterday’s report 91.47, but it did not make it to the suggested target 91.91 (the high at the moment of preparing this report is 91.73). The most important technical event for the past 24 hours was the fact that the ascending trend line from May 20th low, is now at yesterday’s low 91.06. This makes this support the single most important support without a shadow of a doubt! It seems as if we are about to test it, and we suggested keeping an eye at this pair as it gets closer to this level, because this very test is what will determine and set the short term direction. If we break 91.06 the price will drop hard, to 89.81 first, and then to 88.96, both levels are significant and critical support levels. The resistance is provided by short term Fibonacci 61.8% level, at 91.70. If we break this resistance, we will be capable of penetrating 92.07 which stopped us a couple of times, and we will target 92.56 & 93.38.

Support:

• 91.06: the rising trend line from May 20th low. The single most important support for the short term.

• 89.81: May 26th low.

• 88.96: May 20th low.

Resistance:

• 91.70: Fibonacci 61.8% for the short term.

• 92.56: Apr 13th low.

• 93.38: Jan 7th high.