The Dollar/Yen did not break the support or the resistance specified in Friday’s report. It traded in a very dull range of almost 55 pips, and we are still waiting for a break bringing some excitement to this pair. Let’s leave the daily & weekly charts we have been obsessed with lately, and just focus on the hourly chart. We can see that there is a very exciting trend line, dropping from June 4th top. This line is running currently at 85.80. Therefore, all of our attention is at the exciting trend line & the importance it provides. As long as we are trading below this line, the downtrend will be ok, but if we break the resistance 85.80 we will shoot up targeting 87.00 and may be 87.70. The support is provided by an important intraday support at 85.18. If broken, we will target 84.70 first, and there will be nothing stopping the price from reaching our awaited target 83.87, except for the BoJ.

Support:

• 85.18: important intraday level.

• 84.70: This year’s low, and the lowest level since 1995..

• 83.87: Fibonacci extension level 138.2% for the falling wave from 86.86, compared to the wave which started at 88.10.

Resistance:

• 85.80: the falling trend line from June 4th top on the hourly chart.

• 87.00: Jul 7th low.

• 87.70: June 26th top.