The dollar-yen has been rebounding strongly but has now reached an important channel-line from the March highs which is resisting further upside. It looks possible that there could be a bearish move down, with the 50 day MA at 78.60 providing the initial target and then possibly the 77.60 lows. Alternatively, if this is the start of a trend change then a breakout of the channel is also possible, with the next target higher at around 79.85/80.00.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst