Dollar-Yen broke the resistance specified in Friday’s report 90.41, but stopped in the middle of the road to the suggested target, at 90.90. This indicates that the bounce we talked about still has the momentum needed to go on. This fine bounce may manage to capitalize on the break of 90.41 to go higher. If the Dollar is meant to achieve more gains from this bounce, it is preferred that we do not break support at 89.94.

And between 90.36 & 89.94, we will await a break of either of them to set the direction for the short term. If we test the falling trend line and break the resistance 90.36, the price will already be in a correction for the whole drop from 93.75, with ideal targets at 91.44 & 91.98. In case of a break of the support 89.94, we will target 89.12, and if broken we will be going back to the same trend line that provided last week’s support, which is currently at 88.60.

Support:

• 89.94: the rising trend line from Wednesday’s low.

• 89.12: Jan 27th low.

• 88.30: the support of the falling trend line from 90.58.

Resistance:

• 90.36: important intraday top.

• 91.44: Fibonacci 50% for the whole drop from 93.75.

• 91.98: Fibonacci 61.8% for the whole drop from 93.75.

Forex trading analysis by Munther Marji for http: //www. forexpros. com