The September Yen is finding moderate pressure this morning, and after filling in the chart gap up to the 103.21 area has been unable to hold above the 103.00 resistance level. Although there is some risk aversion seen in global markets this morning, there has been a shift in safe-haven support back towards the Dollar in front of the FOMC meeting minutes later today. Japanese equities clawed their way back towards unchanged levels by the close, which has also deflated the Yen’s underlying safe-haven support as well. The Yen is likely to find additional pressure if Fed tapering prospects are boosted by the FOMC meeting minutes but as long as Asian emerging market currencies remain in their collective tailspin, any sort of large-scale downdraft is likely to be off the table for now. The September Yen may find support around the 102.28 level this morning, and is likely to remain on the defensive throughout today’s trading session.
Technical Outlook
JPY (SEP): Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The market’s short-term trend is positive on the close above the 9-day moving average. It is a mildly bullish indicator that the market closed over the pivot swing number. The next downside target is now at 101.78. The next area of resistance is around 103.40 and 103.81, while 1st support hits today at 102.38 and below there at 101.78.