Our waiting finally paid, as we finally saw the Dollar/Yen sharply bouncing as we have expected, and as we have been waiting for. The Dollar/Yen broke the resistance specified in yesterday's report 87.72, only to reach 88.44(the high at the moment of preparing this report). This sharp bounce came as no surprise, with the consolidation around 88, and after bouncing from the support area shown on the hourly chart below, and after clearly breaking the falling trend line from June 21st top. Short term support is at 88.19, and breaking it would indicate a continuation of the drop to 87.35 & 86.47. The resistance is at 88.51, and breaking it would mean that the Dollar is about to capitalize on the break of the above mentioned trend line, which will ideally target short term Fibonacci levels: 89.20 & 89.73. This pair is going as expected, in the expected direction, and in convergence with our negative technical outlook for the medium term. We absolutely expect the fall to continue on the medium term. But we should not neglect the enormous possibilities of a bounce up targeting Fibonacci levels: a bounce is highly probable, even if it was a temp, but the trend is down without a shadow of a doubt!

Support:

* 88.19: Friday's top.

* 87.35: an obvious support area on the hourly chart, and Dec 9th 09 low.

* 86.47: previous well known support.

Resistance:

* 88.51: previous well known resistance.

* 89.20: Fibonacci 50% for the drop from 91.45.

* 89.73: Fibonacci 61.8% for the drop from 91.45.