Morning Report

The dollar versus yen continues it's sideway trading within a relatively narrow range yesterday through the minor bullish channel shown in the image above. We see that these trades target collecting enough bearish momentum to support the bearish short term wave expected for the pair, which had started after achieving a clear breach of the minor support 89.00 and then head towards the main target around 87.45. The bearish short term wave will prevail if a four hour close above 90.00 is not seen.

The trading range for today is among the key support at 87.45 and the key resistance at 91.30.

The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60.

RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 89.00 target 87.45 and stop loss above 90.00, might be appropriate.