Dollar-Yen broke the support 88.56, and came close to the suggested target 88.13 (the low until this moment is 88.19). That is why this support will be our “support of the day”, and we believe it is the last significant support before the last 15 years low 87.10. Breaking 88.13 will be a signal that the price is heading to a test of Jan 12th bottom, and this year’s & the last 15 years’ low 87.10, and may be later to levels that have not been seen on the screens since 1995, like 86.40.

Short-term resistance is 88.46, and breaking it would give this pair the needed strength to go back to 89, and specifically to 89.07 first, and may be 89.60 later. The outlook for the medium-term is still negative, and approaching 88.13 only added to the negativity.

Support:

• 88.13: Oct 13th low.

• 87.10: Jan 12th low.

• 86.40: support area from 1995.

Resistance:

• 88.46: short-term resistance.

• 89.07: intraday top.

• 89.60: Nov 7th low.

Forex Trading Analysis by www. forexpros. com – Written by Munther Marji