USD/JPY

Dollar-Yen Broke 89.01 but it did not reach the expected target 88.13, and settled for a bottom only 8 pip below Tuesday's low. The down movement has slowed down, drawing our attention to what could be a wedge pattern (as displayed on the attached chart), which is a pattern that could limit the current drop to the bottom of this pattern, or a support that is close to it, and could push price higher on the short-term. If this scenario turns out to be right, we will rise and break short-term resistance 89.15 where there is Fibonacci 61.8%, and we will witness a rising move targeting the falling trendline from October 26th top, and the upper limit of the above mentioned pattern at 89.86 first, and if broken we could see a jump to 90.73. on the other hand, if the bottom of the pattern at 88.58 is broken, we will target 88.13 which is the last significant support before the last 15 years low 87.10

Support:
• 88.58: the bottom of the supposed wedge formation.
• 88.13: Oct 13th low.
• 87.10: Jan 12th low.

Resistance:
• 89.15: Fibonacci 61.8% for short-term.
• 89.87: the top of the supposed wedge formation.
• 90.73: intraday top.

Munther T. Marji
FOREXPROS