USD/JPY

Though it tried more than once, the Dollar-Yen could not break 91.78, and that is why there is almost no change to the technical outlook we spoke about yesterday. 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 retest level for the broken channel 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: the retest level for the broken channel.

• 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 www. forexpros. com. See Forexpros for information.