USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen broke the support specified in yesterday’s report 85.35, and dropped as expected to stop a few steps before our suggested target. Let’s leave the daily & weekly charts we have been obsessed with lately, and just focus on the hourly chart. We can see that there is a very exciting trend line, dropping from June 4th top.

This line is running currently at 85.95. Therefore, all of our attention is at the exciting trend line & the importance it provides. As long as we are trading below this line, the downtrend will be ok, but if we break the resistance 85.95 we will shoot up targeting 87.00 and may be 87.70. The support is provided by Fibonacci 61.8% for the short term, at 85.12. If broken, we will target 84.70 first, and there will be nothing stopping the price from reaching our awaited target 83.87, except for the BoJ.

Support:

• 85.12: Fibonacci 61.8% for the short term.

• 84.70: This year’s low, and the lowest level since 1995..

• 83.87: Fibonacci extension level 138.2% for the falling wave from 86.86, compared to the wave which started at 88.10.

Resistance:

• 85.95: the falling trend line from June 4th top on the hourly chart, and Aug 10th top.

• 87.00: Jul 7th low.

• 87.70: June 26th top.