The Yen experienced broad based selling in Monday’s session as market sentiment pointed to global economic improvement and Japan’s Monetary Base expanded 42.0%; the best in almost 40 years. The expansion provided confidence that the Bank of Japan’s monetary efforts are working to raise inflation and economic activity. Today’s activity is finding the Yen with continued selling pressure but, with much less enthusiasm. An area of minor technical support may lead to a good bounce if US economic data comes in negative later today.
Technical Outlook
JPY (SEP): Declining momentum studies in the neutral zone will tend to reinforce lower price action. A negative signal for trend short-term was given on a close under the 9-bar moving average. The market tilt is slightly negative with the close under the pivot. The next downside target is 101.21. The next area of resistance is around 102.13 and 102.46, while 1st support hits today at 101.51 and below there at 101.21.