Current:  114.65;     Range today: 114.50/115.25

The drop was limited to just 114.12 yesterday and after rising to 114.90, Dollar/Yen entered a minor consolidation.  It suggests higher levels today.  Initially today Dollar/Yen should drop back to 114.50, but then it should continue the rise to 115.25.  The structure of the rise so far suggests that it is a corrective swing, so after a test of 115.25 Dollar/Yen should resume its decline.  A break of 114.10 will lead to a test of the 113.35/70 zone.  With the short-term cycle rolling over now the next drop should be completed fairly quickly.  A rise back through 114.20 will be a positive sign for a reversal and a break of 115.50 will confirm it.  Only a strong drop through 113.35 will suggest that the decline will continue towards 111.00.  

Euro/Yen hit 147.00 yesterday but it has not completed the rally.  Expect a brief drop back to 146.50 today before Euro/Yen rises again.  However, Euro/Yen is in the final stages of its rally so I do not expect levels above 147.00 to be held for long.  A failure to hold above 147.00 will be a preliminary sign of weakness and a break of 146.50 will then clear the way for a return to 145.15.  A break of that level will then allow the decline to extend to the last significant low and the mvg avg support around 143.65.

Aussie/Yen managed to push up a little yesterday but by the end of the day had retreated.  It should resume its drop towards 84.35 and 83.80. 

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