USDJPY – Approaching the wedge top

 Dollar-Yen broke 88.18 and came close to the target suggested for this break and the top of the wedge formation at 88.58, but it settled for 88.46. The top of the wedge formation will be the most important resistance for today and breaking it would indicate that we have a pressure-free Dollar! The top of the wedge is currently at the close by resistance 88.40, this resistance deserves every bit of our attention because it is really important. Breaking it will give way to test November 23rd top 89.17, and then 89.85. As for the support, it is provided by the Asian session low at 87.98, and breaking it would mean that coming close to the top of the wedge formation has initiated a downward move, or at least a correction for the sizable jump from 87.81. In both cases, the first important target is Fibonacci 61.8% for the short-term at 87.25, and if broken, more pressure will be provided to target 86.72.

Support:
• 87.98: Asian session low.
• 87.25: Fibonacci 61.8% for the short-term.
• 86.72: intraday top from last week.

Resistance:
• 88.40: the top of the supposed wedge formation.
• 89.17: Nov 23rd high.
• 89.85: important resistance/support area that includes the lows for the 2nd & 3rd of last month..

Munther T. Marji
FOREXPROS