As expected, Dollar-Yen continued this slow rise, and we still believe that it is heading very slowly probably towards our previously suggested target area 92.52-58, which could be an area for the price to reverse from, and start correcting the whole rise from 87.98. Short-term resistance is 92.27 and breaking it would mean we are heading towards the target area 92.52-58, or may be to a more exciting and attractive target, which is 92.88: Fibonacci 50% resistance for the whole down move from 97.77 to 87.98.

And since the 2 targets are not far from each other, the whole area combining them (92.52-92.88) is considered one wide resistance area that we expect is able to reverse the direction on the short-term, and initiate a correction that we can not talk about its size now. The most important support is 91.98, provided by the rising trendline on the hourly chart. If broken, we will target 90.90 where the known previous resistance awaits. And Since the RSI is standing in the middle of the way, the odds of going in either direction look close.

Support:

• 91.98: the rising trendline on the hourly.

• 91.26: the important support area from last week.

• 90.90: previous known resistance.

Resistance:

• 92.27: short-term resistance.

• 92.52-92.58: previous well known resistance area.

• 92.88: Fibonacci 50% for the whole drop from 97.77 to 87.98.

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