USD / JPY – Standing on the edge!

As we expected in yesterday’s report when we said “ a falling correction is the most logical expectation after a move of the size we seen on Friday”, Dollar-Yen broke the support 89.52 and fell to reach 88.75 this morning. It seems that we are standing on an important support, because we have actually touched the trendline rising from 85.07.

That is why we will consider this line as the most important support of the day, which is currently at 88.75, and we are just pips above it. If this line is broken, the falling correction will go on and target 88.33 first, and then the important Fibonacci 50% support for the whole rise from 84.81at 87.78. But, if price manage to survive the touch of this line, it will be ready for another jump that is expected to break short-term resistance
89.13 and target 89.75 first, and then November 12th top 90.59.

Support:

• 88.75: the rising trendline from 85.07 on the hourly chart.

• 88.33: previous well known support/resistance area.

• 87.78: Fibonacci 50% for the whole move from 84.81 to 90.75.

Resistance:

• 89.13: intraday resistance on the hourly chart.

• 89.75: Fibonacci 50% for short-term.

• 90.59: Nov 12th high.

Forex Trading Analysis written by Munther Marji for Forexpros