Current:  115.00;     Range today: 114.70/115.80

Dollar/Yen spent the day ranging, extending the rally to 115.45 in the last hour of trading on Tuesday, dropping back to 114.50 and then returning to the current level.  Immediate support is generally holding so Dollar/Yen has the opportunity to extend its rally again.  Expect some initial ranging 114.70/115.20 in Asia today, but later it should extend towards 116.00.  I do not expect levels above 115.45 to be sustained for long and once Dollar/Yen falls back below 115.45 it will fall back to the 113.00/50 zone. 

Euro/Yen is in an ambiguous position.  The rise off 144.40 yesterday was a good move and maintains the prospect of a new rally to a new high.  However, resistance at 145.20 is capping the move, a move that has an indecisive wave structure.  Consequently the rise so far may well be a completed corrective swing.  A drop through 144.20 now will confirm Euro/Yen in a new decline towards 142.00/75.  Euro/Yen must hold at 144.40 to maintain the upward momentum.  A subsequent break of 145.20 will then swing the odds in favour of an eventual test of 147.00. 

Aussie/Yen drifted lower yesterday and if it holds at 84.40 today then it can rise towards 85.75 again.  A break of 84.40 will suggest a drop back to 83.45 and then 82.65. 

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