Dollar-Yen broke the specified resistance in Friday’s report 89.80, and successfully reached both targets 90.40 & 90.90 with amazing accuracy (Friday’s high 90.89). We see that the drop that followed to 90.22 is just a short-term correction, and that the advance will carry on after we are done with it to areas above 90.90. We build this opinion on our wave count for the short-term which shows that we are in wave 4 of 5 rising waves that started at 88.91 on Thursday.

If our wave count turns out to be right, we will not break the support 89.86, the price will start rising breaking short-term resistance 90.46, and targeting 91.30 first, and may be 91.93 afterwards. If a surprise happens and we break 89.86 the suggested wave count will be invalid, and the price will drop targeting the rising trend line from 85.84 which is currently at 89.17, and may be 88.70.

Support:

• 89.86: Fibonacci 61.8% for wave 3 according to our short-term wave count.

• 89.17: the rising trend line from 85.84.

• 88.70: Fibonacci 61.8% for the whole move from 84.81 to 90.89.

Resistance:

• 90.46: the falling trend line from Friday’s top on intraday charts.

• 91.30: Nov 4th high.

• 91.93: Sep 3rd low.

Forex trading by Munther Marji for Forexpros. See Forexpros for more Forex Quotes.