Opposite to what is expected, the Dollar-Yen held above the support specified in yesterday’s report 90.02, and broke the resistance 90.47, but the movement was extremely limited, with the price topping at 90.66. We have adjusted the lines that frame the current area, to make the upper limit at Monday’s top 90.78, which is very close to last Wednesday’s top 90.80.

The lower limit is provided by the rising trend line from 89.61 on the hourly chart, and is currently at 90.12, which was tested yesterday, and passed the test. In case we broke the resistance 90.78 we will see the Dollar take control, and drive this pair higher, as we see it targeting the important 91.60 first, then 92.31 which is important as well. But in case we broke the rising trend line at 90.12, the price will start to fall, confirming the negative technical outlook which came after Friday’s price behaviour. This fall is expected to target 89.37 & 88.72. But before breaking any of these 2 important limits, the technical outlook is mixed.

Support:

• 90.12: the rising trend line from 89.61 on the hourly chart.

• 89.37: Mar 2nd low

• 88.72: Feb 26th low.

Resistance:

• 90.78: Monday’s high.

• 91.60: Oct 29th high.

• 92.31: Oct 27th high.