The Dollar failed to capitalize on its consolidation above the 90 landmark, and gave up to the Yen at 90.60, then dropped more than 100 pips to reach the support specified in yesterday’s report exactly (the support was 89.56 & today’s low until the moment of preparing this report is 89.56).Today, Yen’s strength will completely depend on its ability to break the support 89.56. If the Yen can push the Dollar Below this level, we will witness a strong drop, targeting the same set of targets we suggested in the last 2 reports: 88.96 & 87.99. The resistance is at 90.23 and breaking it (if it happens) will target Fibonacci retracement levels 91.24 & 91.89. The latter is the most important resistance for the short (and may be medium) term for now. The downtrend needs to hold below the falling intraday trend line to keep things going smoothly (which is currently at 90.23). If broken, the short term negative technical outlook will change dramatically. The yes in still the one wearing the pants in this relationship, but beware of 90.23.

Support:

• 89.56: important intraday level, just below the falling trend line on the hourly chart, and also today’s low at the moment of preparing this report.

• 88.96: Thursday’s low, and a previous very important support.

• 87.99: Mar 6th low.

Resistance:

• 90.23: the falling trend line from yesterday’s top on intraday charts.

• 91.29: Fibonacci 50% for the short term.

• 91.84: Fibonacci 61.8% for the short term.