The dollar is very weak in general today versus both the euro and even the yen, which could be a change of profile, as in a more generalized, global exodus out of the greenback that will get the attention of the G-7 monetary authorities. Be that as it may, today's up-gap in the CurrencyShares Japanese Yen Trust (NYSE: FXY) reflects yen strength as the currency heads for a test of the 114 Aug-Oct support line. Right now the dollar is trading at 115.60/65, and my work argues for downside continuation against the yen, which will lift the FXY over the 86.70 level on the way to 88.00 immediately thereafter.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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