USD / JPY Technical Forex Analysis for Forex Traders

Dollar/Yen broke the support specified in yesterday’s report 91.79, and dropped by almost 100 pips, getting very close to our suggested target 90.75, without reaching it (The lowest price for the past 24 hours is 90.84). Stopping at this bottom is actually stopping at Fibonacci 50% level for the whole rise from 87.99 to 93.62. Therefore, we are before a very important level, which will be our “support of the day”. If broken, the drop will continue, and will target a very important level at 90.14, and if this one is also broken, we will target 89.61. On the other hand, resistance is at 91.50, and breaking it would improve the negative technical outlook for the short term, probably slightly. This break will give the price enough strength to rise towards 92.28, and may be later the single most important resistance at this stage 93.49. This resistance, which got attacked more than once without giving way, is an important level not only for the short term, but for the medium term as well. If broken, a lot of things will change, but until then, the Yen is the one wearing the pants in this relationship.

Support:

• 90.81: Fibonacci 50% support for the rise from 87.99.

• 90.14: Fibonacci 61.8% support for the rise from 87.99.

• 89.61: Mar 9th low.

Resistance:

• 91.50: important intraday level.

• 92.28: Fibonacci 50% for the short term.

• 93.49: previous hourly resistance.