The Dollar/Yen continued to drop slowly, in yet another confirmation that the bears are beating the bulls! USDJPY broke the support specified in Friday’s report 89.40, and reached a new bottom for this recent falling trend at 89.20. 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 90.86. Short term support is at 89.20, and breaking it will be another evidence that we are going down. This break will target 87.99 & 87.35. Last week’s important support at 90.32 will turn into a resistance for today. Breaking this level will give this pair a chance to test the important trend line at 90.86, 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.

Support:

• 89.20: Friday’s low.

• 87.99: May 6th low.

• 87.35: Dec 9th 2009 low.

Resistance:

• 90.32: Wednesday’s support which has turned into a resistance on the hourly chart.

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

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