As expected, and in harmony with the trend, Dollar-Yen broke the support 88.13 , and successfully reached the two suggested targets 87.10 & 86.40. This move has brought us prices that have not been seen for 15 years. It is only expected (and logical), that reaching 86.40 would provide us with a correction for the down leg that started at 89.17, and reached here without any significant correction.

Such a correction will typically target the area 87.73-88.07 where there is Fibonacci 50% & 61.8% resistance levels (for the short-term). But before jumping on board we should see a break of the resistance 87.01. On the other hand, the support 86.40 will be support of the day, and breaking it would mean a continuation of the downtrend that showed a lot of strength yesterday, and a continuation of the drop towards new levels that have not been seen for a decade and a half, at 85.90, and may be later the calculated target for the broken wedge formation at 85.33.

Support:

• 86.40: support area from 1995.

• 85.90: support area from 1995.

• 85.33: the calculated target for the broken wedge formation.

Resistance:

• 87.01: Fibonacci 61.8% for the micro-term.

• 87.73: Fibonacci 50% for the short-term.

• 88.33: the bottom of the broken wedge formation.

Forex Trading Analysis Written By Forexpros