It seems as if the Dollar-Yen is trapped! And that it is stuck between the two limits we talked about in yesterday’s report, since we have not seen a break of either of them, as the price continued to trade marginally. Yesterday, we adjusted the lines that frame the current area, to make the upper limit at Monday’s top 90.78, which is very close to last Wednesday’s top 90.80.

The lower limit is provided by the rising trend line from 89.61 on the hourly chart, which has been tested several times so far. We will adopt the support just below this line at 90.04 as short term support In case we broke the resistance 90.78 we will see the Dollar take control, and drive this pair higher, as we see it targeting the important 91.60 first, then 92.31 which is important as well. But in case we broke the rising trend line at 90.04, the price will start to fall, confirming the negative technical outlook which came after Friday’s price behaviour. This fall is expected to target 89.37 & 88.53. But before breaking any of these 2 important limits, the technical outlook will be mixed.

Support:

• 90.04: important support just below the rising trend line from 89.61 on the hourly chart.

• 89.37: Mar 2nd low

• 88.53: Feb 4th low.

Resistance:

• 90.78: Monday’s high.

• 91.60: Oct 29th high.

• 92.31: Oct 27th high.