The dollar-yen recently broke out of a down-sloping channel and has closed two days running above the channel giving a potentially bullish longer-term outlook. However, today the pair has started to fall after hitting resistance at the 79.70 highs and may return to re-touch the lows and/or the channel line again at around 79.20. If on the other hand there is a break to the upside above 79.70 then the 100 and 50-day MA’s at around 80.20 would provide the next target higher.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst