Morning Report

The negative pressure succeeded in pushing the bearish direction onto the dollar versus yen's trading yesterday, thus breaching minor support levels and heading towards achieving the descend mentioned in yesterday's report. Momentum indicators are showing some positive signs, which could push the pair to the upside to touch the resistance level for the minor descending channel, since it organized trading within the current short term wave at 88.45 and then resumeing the bearish direction expected for today. It is vital that 88.65 remains intact with the four hour close, so that these expectations could prevail.

The trading range for today is among the key support at 87.00 and the key resistance at 89.50.

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 from 88.45 target 87.00 and stop loss above 89.20, might be appropriate.