Dollar-Yen broke the support 88.16 and successfully reached the first suggested target 87.78, but stayed relatively far from the second target, and the most important support for now 87.08. The importance of 87.08 will carry on for the rest of the week, since it is Fibonacci 61.8% support for the rise from 84.81.

As we can see from the attached chart, the rising move during the Asian session has bumped into the previously broken trendline. And for the technical outlook for the Dollar, we should surpass this line which is currently at 88.25. Therefore, we should wait for a break of the support or resistance before we can predict the direction of short-term. If we break the resistance 88.25 this pair can surprise some by reaching areas above 89 such as 89.17 or 89.70. on the other hand, if the most important support for now 87.08 is broken, the downtrend will continue with confidence, and the next set of targets will be 86.29 & 85.71.

Support:

• 87.08: Fibonacci 61.8% for the whole move from 84.81 to 90.75.

• 86.29: important intraday level on hourly chart.

• 85.71: important intraday level on hourly chart.

Resistance:

• 88.25: broken trendline.

• 89.17: important intraday level on hourly chart.

• 89.70: important intraday level on hourly chart.

Forex Trading Analysis written by Munther Marji for Forexpros. For real time Forex charts see Forexpros.