Dollar-Yen broke the support 89.79 and reached the first target suggested for that break 89.40 successfully. The break of 89.79, the support that was provided to us by the rising trendline from last week's low, clearly means that the short-term trend is a down trend. However, the correction of yesterday's drop has already started, and is getting closer and closer to the broken trendline at 89.82 as this report is prepared. But the most important resistance is 90.23, where the falling trendline from October 27th top awaits. The bears will be in control as long as price is below this line that provides today's most important resistance. And if this happens, we expect the price to fall and test Fibonacci 61.8% support for the micro-term at 89.53, and may be a break as well, that will lead to the important bottom 88.82. If the opposite of what we expect happens, and we break the resistance 90.23, the price will be on its way to 90.90 first, and may be 91.31 later.
 
Support:
• 89.53: Fibhonaci 61.8% for the micro-term.
• 88.82: Oct 14th low, and an important low for determining the medium-term trend.
• 88.33: previous support.
 
Resistance:
• 90.23: the falling trendline from Oct 27th high.
• 90.90: a well known previous support/resistance.
• 91.31: Nov 4th high.
 
Forex trading analysis by forexpros .com – Written by Munther Marji