As we said yesterday, Dollar-Yen broke the trend line rising from 84.81, but the drop that followed was limited, before going back above the line. This behavior recommends caution, since going back above the broken line stripped a lot of importance for this break. Short-term resistance is 93.08, and the support is at 92.24 .

If this support is broken, we will fall to 91.51, and then the important 90.55, which is also another important support for the short term. On the other hand, if the price holds above this support, a short term rise will be initiated, challenging short term resistance at 93.08, and breaking this level would at least lead to challenge the top93.20, targeting the long awaited 93.53, and if this important resistance is broken, we will target 94.05.

Support:

• 92.24: the rising trend line from 84.81

• 91.51: obvious resistance area on the hourly chart.

• 90.55: Fibonacci 61.8% for the whole move from 88.91 to 93.20.

Resistance:

• 93.08: previous support/resistance area.

• 93.53: Mar 19h low.

• 94.05: Aug 28th high.

Forex trading by Munther Marji for Forexpros.