In opposition to our expectations, Dollar-Yen broke 91.30, penetrating through the moving average SMA100, and breaking the top of the channel that we introduced. This break, even though it is in an opposite direction of our short-term technical outlook, should not be ignored.

The price is invited to show strength against the resistance 91.78 (currently trading pips below it), and if broken, a test of the area that caught our attention 92.31-92.52 will be only a matter of time. And if this area is broken, the Dollar will take off, towards March 19th low 93.53. On the other hand, if the price fails to create a sustained break of 91.78, a drop towards 90.90 where the moving average SMA100 is waiting, will follow. And if this level is broken, the price will drop towards the important 90.03, and if broken we are to see 89.55.

Support:

• 90.90: intraday support.

• 90.03: Fibonacci 61.8% for the whole move from 88.91 to 91.85.

• 89.55: previous important intraday low.

Resistance:

• 91.78: Jul 8th low.

• 92.31-92.52: resistance area created between Oct 27th & Sep 21st tops.

• 93.53: Mar 19h low.

Forex trading by Munther Marji for Forexpros. See Forexpros for Forex education and trading tools.