Dollar/Yen Precariously Placed

USD/JPY has dropped down out of a large contracting triangle and at the same time pierced support around the 76.00 level. For now the dollar is holding back just above the important 76.00 level but the prospects don't look great.

A breach of last week's low of 75.74 would be a sign that it wouldn't be wise to be long dollars. The only warning is threat the Bank of Japan could be lurking to give yen buyers a bit of a smack to remind them of their presence.

Also, triangles at this late phase of a downtrend tend to be less reliable on breakouts. Nevertheless at least a 2yen fall should result if 75.44 gives way. As always never trade without stops. Especially with the BOJ watching!