As it is expected, the "trend line that deserves attention" has successfully managed to present support once again, giving the Dollar-Yen a chance to hold above support 89.12, breaking resistance 89.69, and successfully reaching the first suggested target 90.30. This fine bounce may manage to test the most important resistance for now 90.71, which is provided by the falling trend line from 93.75.

If the Dollar is meant to achieve more gains from this bounce, it is preferred that we do not break support at 89.98. And between 90.71 & 89.98, we will await a break of either of them to set the direction for the short term. If wettest the falling trend line and break the resistance 90.71, the price will already be in a correction for the whole drop from 93.75, with ideal targets at 91.44 & 91.98. In case of a break of the support 89.98, we will target going back to the same trend line that provided yesterdays support, which is currently at 89.05, and if broken
88.30.

Support:

* 89.98: Fibonacci 61.8% for the short term.

* 89.05: the support of the falling trend line from 90.58.

* 88.30: Dec 14th low

Resistance:

* 90.71 the falling trend line from 93.75, the most important resistance currently.

* 91.44: Fibonacci 50% for the whole drop from 93.75.

* 91.98: Fibonacci 61.8% for the whole drop from 93.75.

Forex Trading Analysis written by Munther Marji for http://www.forexpros.com/.