Dollar-yen broke the descending trend channel after the US monthly employment report on Friday. It held above the channel for the last few hours before the end of the week, and managed t close above the channel. USDJPY crossed the moving average SMA100 even before the news came out, which indicates that the correction for the leg down from 97.77 has already begun, and that short-term downtrend has ended. But, first we have to break through 93.42.

Ideally, this correction would target 94.85 or
95.54, and in this case the latter would be a decisive resistance that will determine the trend for the short-term. If we fail to do so, we will head to a test of short-term support
92.73, a break here could target 92.43 only, where there is Fibonacci 61.8% & the retest level of the broken line, or we could see the long awaited visit of the strong support
91.73-91.78.

Support:

• 92.73: short-term Fibonacci 38.2% support, plus the moving average SMA100.

• 92.43: short-term Fibonacci 61.8% support, plus the retest level of the broken trendline.

• 91.73-91.76: Strong, important support area that combines July 8th, 10th & 13th lows.

Resistance:

• 93.42: The trendline falling from Aug 9th, the most important resistance for short-term.

• 94.16: Fibonacci 38.2% for the whole move down from 97.77.

• 94.85: Fibonacci 50% for the whole move down from 97.77.

Forex Analysis by Cory Mitchell at ForexPros. com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check Forexpros. com