Dollar-Yen has tried to break the lower limit of the supposed triangle pattern, but it was not able to overcome Friday's low, if we are to receive a confirmation of the break of the triangle we need to see the price below Friday's low 88.59. That is why this support is the most important for today. On the other hand, the resistance of the day is the upper limit of the triangle formation 89.63. And breaking either of them is what will give the next move its direction.

If we break 89.63, short-term direction will be up, which would give a chance to approach 91 since the first important resistance in this area is the limit of the downtrend 90.55, which represents the falling trendline from August 9th top. Just below it there is the moving average SMA10. There are several resistance levels between here and the strong 91.63. On the other hand, if we break 88.59 that would mean we are on our way to break the 8-month low at 88.22, in this case 87.97 and 87.10 look like the most possible targets of the next leg down.

Support:

• 88.59: Friday's low.

• 87.97: Jan 23rd low.

• 87.10: 2009 low.

Resistance:

• 89.63: the upper  trendline in the supposed triangle pattern, most important resistance for the short-term.

• 90.55: the falling trendline from Aug 9th top.

• 91.63: strong previous resistance.

Forex trading analysis by forexpros. com - Written by Munther T. Marji