The Dollar is making headway against the Yen, pushing through our 2nd tier downtrend line while backing away from our 3rd tier.

The negative Business Survey Index number is really taking its toll on the Yen. With the Japanese economy slowing much faster than America's and both central banks participating in quantitative easing, investors are leaning towards the Dollar as a safe haven as compared to the Yen.

Perhaps investors are also betting that the BOJ will need to implement additional quantitative easing and economic stimulus measures to buoy the economy, further deflating the Yen.

On a positive note, the farther the USD/JPY rises, the more Japanese manufacturers and exports find relief in lower input costs and the possibility of higher demand.

With the USD/JPY approaching February highs, the currency pair seems poised to break out and make the 100 psychological resistance a distant memory.

Fundamentally, we find resistances of 99.00, 99.79, 100.69, and 101.53. To the downside, we see supports of 98.11, 97.49, 96.65, and 95.92.

The USD/JPY is currently exchanging at 98.21.

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