The Dollar/Yen continued to drop slowly, a bit faster than usual this morning, in yet another confirmation that the bears are beating the bulls! USDJPY broke the support specified in yesterday's report 89.20, and reached a new bottom for this recent falling trend at 88.59 without being able to meet our suggested target 87.99. This confirms the negative technical outlook we have seen lately. And we believe it will persist as long as we are trading below the falling trend line from June 14th top, which is currently at 90.64. Short term support is at 88.67, and breaking it will be another evidence that we are going down. This break will target 87.99 &
87.35. The resistance has shifted to 89.45, where we see an important level for several reasons. Breaking this level will give this pair a chance to test the important trend line at 90.64 as a first target, and if this one is broken, things will go against our outlook, as we will target 92.07.

This pair is going as expected, in the expected direction, and in convergence with our negative technical outlook for the short & medium terms. We expect the fall to go on, but we hope to see it go faster, and more exciting. But for today in specific, we should be careful since we could see a bounce, because we came very close to the descending trend line illustrated on the attached chart, a bounce is highly probable, even if it was a temp.

Support:

88.67: important intraday level.

87.99: May 6th low.

87.35: Dec 9th 2009 low.

Resistance:

89.45: important intraday level.

90.64: the descending trend line from Jun 14th top on the hourly chart.

92.07: the important resistance area holding Jun 7th & 14th.