US Treasury Secretary Timothy Geitner was in Japan talking with Japanese reporters today, where he stated I believe deeply that it's very important to the United States, to the economic health of the United States, that we maintain a strong dollar.
Meanwhile the question that remains is whether the Bank of Japan intervene if the USD/JPY breaks below 88.00 as they have in the past. The bank is silent on this subject at the moment.
Which brings us to this week's truth-telling Fibs.
On October 7th, price reached a low at the end of a long-term downtrend at 88.03 By October 27th price had bounced up hitting a high of 92.33
As you can see on the chart, price looks as though it may be hitting a double-bottom with strong resistance at the 61.8 retracement level at 89.76
If price continues up from here, a very long-term target would be 94.98. Closer resistance levels to watch include 90.18, 90.69, 91.31 and 92.33, which would bring us back to the previous high.
If price finally does break this support level, the USD/JPY could go back to the 88.03 level, potentially pausing at additional support along the way at 88.95 - at which point we would find out what the Bank of Japan intends to do.