The Dollar-Yen dropped to 89 again, and we might see it test 88.68 today. But before that, we need to see a break of 88.96, which is the most important support for the short-term, and if broken the direction would be down to test the important support 88.68, which must hold to prevent another attempt to test 87.97 which survived last week's attempt for a break.

We will still pay attention towards the trendline on the hourly chart, which is currently at 90.27, and if it is broken, then the Dollar would be invited to show how deep its real strength is over a series of resistance areas starting at 90.67 and reaches 91.63. The resistance that is attached to this line is 90.27, and if broken, then the line is broken, and the next stop would be 90.67 which is an important stop on the way to the most important stop in these areas 91.63.

Support:

• 88.96: short-term support.

• 88.68: support area that supported the price twice this month.

• 87.97: Jan 23rd low.

Resistance:

• 90.27: the falling trendline on the hourly chart.

• 90.67: previous support.

• 91.12: previous support & resistance area.

Forex trading analysis by forexpros. com - Written by Munther T. Marji