Upside attempts should now face strong selling pressure starting at 88.30/40 line. Long players should also note the recent breakout has damaged the short term technical picture, after the downside of ascending channel was finally violated. Looks like a recovery above 88.65 is the first requirement to try and restore the buyer's confidence.
The scope for further Yen strength looks constructive going forward, with the unwinding of additional long positions only helping to fuel the short-term prospect of gains en-route to Jan 9 swing low at 87.60/70, next notable support, ahead of 87.35/40, sequence of highs from Jan 2. The more aggressive sellers might even be targeting a deeper target towards 86.80, Jan 8 low