Dollar-Yen broke the rising trendline from 85.07 at 88.75 and successfully reached the first target 88.33. Breaking this line indicates there is a continuation of the downside pressures, that emerged after Friday’s top, and if it continues, we will break today’s support which is yesterday’s low 88.16, and would target Fibonacci 50% at 87.78 first, and may be the most important support for the time being : Fibonacci 61.8% for the whole up-move from 84.81 at 87.08.

But as we can see from the attached chart, the drop stopped at the moving average SMA100, which could provide a chance for a bounce back up, in what could be (at least) a correction for the drop from Friday’s top. In this case the price will break intraday resistance at 88.48, and would ideally target the area that is bordered by Fibonacci 38.2% for the short-term at 89.15 & Fibonacci 61.8% at 89.76.

Support:

• 88.16: yesterday’s low.

• 87.78: Fibonacci 50% for the whole move from 84.81 to 90.75.

• 87.08: Fibonacci 61.8% for the whole move from 84.81 to 90.75.

Resistance:

• 88.48: intraday resistance.

• 89.15: Fibonacci 38.2% for short-term.

• 89.76: Fibonacci 38.2% for short-term.
---

Forex Trading Analysis written by Munther Marji for Forexpros. For a comprehensive directory of Forex brokers see Forexpros.