The Dollar/Yen continued to drop slowly, in yet another confirmation that the bears are beating the bulls! With the latest moves, the break of the rising trend line from May 20th will continue to have a tremendous effect on the short term direction, and may be the medium term as well. But, we need a break of today’s support, the support which stopped the drop twice on Monday & today’s Asian session at 90.32 to say that we are on the way to the same set of targets we suggested yesterday. Meaning, if we break 90.32, we will target 89.81 first, and may be 88.96 later. On the other hand, it is required to keep trading below the falling line descending trend line from June 14th high, in order for the negative technical outlook to keep prevailing. This important line is running currently at 91.10. If we keep trading below this level, it will probably fall more & more. But, if we break above this level, the Dollar will say no to the downside scenario, and will test the area which stopped the rise twice on June 7th & June 14th at 92.07, and then 92.56.

Support:

• 90.32: Monday’s low, and Asian session low.

• 89.81: May 26th low.

• 88.96: May 20th low.

Resistance:

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

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

• 92.56: Apr 13th low.