Current:  115.95;      Range today: 115.80/116.50

Dollar/Yen dropped to 115.20 initially yesterday but then rose strongly to 116.15 to suggest that there will be more upside action.  The quality of this rise is uncertain.  Action on the daily charts is favour for an eventual rise through 116.75 and possibly 117.90.  However, the short-term structure of the rally from 113.95 is suspect and suggests the rise is still just a corrective swing.  Today, the rise should continue towards 116.50 before a reaction is made.  That drop is likely to stop at 115.80.  The next rise should take Dollar/Yen to around 117.30.  A strong reaction at that point will signal that a new decline will be seen.  Only a rise through 117.90 will confirm Dollar/Yen on an upward path. 

Euro/Yen dropped back to 148.30 in the first half of the day and then recovered all its losses by the end of the day.  It should extend this rise a little further to 149.00 today and complete the sequence from 145.70.  A failure to hold above 148.85 will be a preliminary sign of weakness but it will take a break of 148.00 to confirm it.  Euro/Yen should then return to 147.15 initially and 145.70 later.  Only a strong rise through 149.00 will suggest that the rally can continue. 

Aussie/Yen could do no more than 89.05 yesterday morning and then fell relatively strongly to discount the possibility of a rise towards 90.50.  Expect a drop back to 87.20.

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