Dollar-Yen moved in a tight range again, but it dropped to 88.54 this morning which is the same level that stopped yesterday's drop! The down movement has slowed down, drawing our attention to what could be a wedge pattern, which is a pattern that could limit the current drop to the bottom of this pattern, or a support that is close to it, and could push price higher on the short- term.

If this scenario turns out to be right, we will rise and break short-term resistance 88.97 where there is the moving average SMA100, and we will witness a rising move targeting the falling trendline from October 26th top, and the upper limit of the above mentioned pattern at 89.71 first, and if broken we could see a jump to 90.73. On the other hand, if the short-term support at 88.72 is broken, we will target 88.13 which is the last significant support before the last 15 years low 87.10

Support:

• 88.56: short-term support.

• 88.13: Oct 13th low.

• 87.10: Jan 12th low.

Resistance:

• 88.97: the moving average SMA100.

• 89.71: the top of the supposed wedge formation.

• 90.73: intraday top.

Forex Trading Analysis by www. forexpros. com.