With supernatural accuracy, the Dollar/Yen stopped at the support specified in yesterday’s report 91.06 (yesterday’s low was 91.07), and traded above it for the whole time after. Stopping here is in fact a test at the ascending trend line from May 20th low, a very accurate test actually (please refer to the attached chart). This makes this support the single most important support without a shadow of a doubt! This line is currently running at 91.17, and it will be our support of the day. And after such an accurate test, we suggest keeping an eye on this pair, because this very test is what will determine and set the short term direction. If we break 91.17 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 the falling trend line from this week’s high, which is at 91.65. 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. It seems like we are going to enjoy an exciting end to this week with the USDJPY.

Support:

• 91.17: 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:

• 91.65: the falling trend line from Monday’s top.

• 92.56: Apr 13th low.

• 93.38: Jan 7th high.