The Dollar/Yen dropped to 83.33, a new 15-year low! The latest drop came in the midst of the disappointment in the BoJ, which after a 2-day meeting, announced that it will not do anything at the moment to deal with the strong Yen. We have recently adjusted the falling trend line on the hourly chart to include Friday’s jump. We still believe in USD/JPY weakness, and we believe it will travel south. Only a break of this line in specific will change our minds. This line is currently running at 85.10 (please refer to the attached chart). To keep trading below it, indicates more downside activity, especially after the BoJ disappointed again yesterday, as the “Japs” said once again they are watching closely, but they did nothing! The market has had it with these comments, and now the Japanese authorities should buy tickets to the “Yen Show”, and see what it will do to the Dollar & the Euro! Short term support is at 83.41, and if broken, we will be on the way to our long-awaited target at 82.25, then we will see the psychological level at 80.00. On the other hand, the above mentioned trend line is at 85.10, and Fibonacci 61.8% short term is at
84.49. If the latter is broken, we will target former. And if this one is also broken, the Dollar will be violent to us all, as it will shoot up to 86.25.

Support:

• 83.41: important intraday level.

• 82.25: the falling trend line on the weekly chart, combining the monthly lows of Dec 2008, Jan & Nov 2009.

• 80.00: psychological level.

Resistance:

• 84.49: Fibonacci 61.8% for the short term.

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

• 86.25: Jul 16th bottom.