The Dollar-Yen stayed below the resistance 92.27, broke the support 91.98, and reached the first target for this break 91.26 successfully. With this down move, we are getting closer to the bottom of the rising trend channel on the hourly chart, currently at 90.76, making it support of the day. Staying above it, would give this pair a chance to correct the drop from Monday's high 92.31, creating a correction that could reach 91.84, the most important resistance for the short-term.

We believe that the borders of the current area are support 90.76 and resistance 97.84, and before breaking any of them, it would be difficult to predict the next move's direction. And we believe that the direction of that move will be the direction of the break. If we break support 90.76, that would mean we broke the rising trend channel, and the trend for the short and medium terms, and that would take the price close to 90 again. On the other hand, breaking resistance 91.84 would mean that the drop from Monday's high is over, and that we are on the way to 92.52-58.

Support:

• 90.76: the bottom of the rising trend channel on the hourly.

• 90.06: Oct 20th low.

• 89.61: Oct 12th low.

Resistance:

• 91.54: Fibonacci 38.2% for the short-term.

• 91.84: Fibonacci 61.8% for the short-term, the most important resistance for now.

• 92.52-92.58: previous well known resistance area.

Forex trading analysis by www. forexpros. com - Written by Munther T. Marji