Dollar-Yen broke the resistance 89.05 and successfully reached the first target 89.45, then came close to 90, settling for 89.79. this morning the price dropped to 88.36 again, to find the trendline that we introduced in the past few days providing it with support. That was the 4th time the price encountered this line, which clearly means it deserves our attention.

That is why we will consider it as support of the day, and it is currently running at 88.43. If it’s broken, the drop from 89.79 will continue and the next pair of targets will be Fibonacci support levels at 87.78 & 87.08. As for the resistance, it is provided by the falling trendline from 89.79 on the intraday charts, which is currently at 88.87. And if broken, another 89.45 visit will be expected, and if this is also broken, we will jump to 90.08 at least.

Support:

• 88.43: a trendline that touched price 4 times.

• 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:

• 88.87: the falling trendline from Friday’s top on the intraday charts.

• 89.45: Fibonacci 61.8% for the short-term.

• 90.08: hourly resistance.

Forex trading analysis by Munther Marji for www. forexpros. com. See our new commodities section on Forexpros