Dollar-Yen broke 90.76 and had some drop after that, but it stopped before 90. In spite of that, the technical outlook became more negative, because we broke the rising channel that we have been monitoring lately. The most important support for the short-term is 90.16, and until this moment it managed to hold above it.

If it can maintain to do so, we expect a correction for the down move from 92.31. But if it is broken, more of the drop is to be expected, first towards the important 89.61, the last important support above 89, since the next important support is 88.82. On the other hand, the most important resistance for the short-term is 91.02, which represents both Fibonacci 38.2%, and also the retest level for the broken channel. If broken, we expect to rise towards the important 91.52, and if we are in front of a correction, we should not break this level. But if a surprise happens and we break it, the price would be on the way back to 92.17.

Support:

• 90.16: short-term support.

• 89.61: previous support & Oct 12th low.

• 88.82: previous support & Oct 14th low.

Resistance:

• 91.02: Fibonacci 38.2% for the short-term, and the retest level for the broken channel, important resistance.

• 91.52: Fibonacci 38.2% for the short-term, important resistance.

• 92.17: previous well known resistance area.

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