Morning Report

The dollar versus yen pair pushed strongly to the upside after breaching pivotal resistance 87.00, which represents the neckline for the bullish technical pattern over an intraday andshort term basis that initially targets 88.55. The importance of this pattern is it representing the start of a bullish short term wave, where trades remain normal within the main descending channel; targeting its main resistance levels at 91.50. From here we expect a bullish intraday direction that supports the bullish short term direction, which initially needs the four hour close to remain above 87.65.

The trading range for today is among the key support at 85.90 and the key resistance at 89.40.

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 buying the pair from 87.00 target 88.55 and stop loss below 86.25, might be appropriate.