The Yen’s decline everyday this week is being reversed this morning with a fairly good rally. The Bank of Japan’s monthly report released today gave an upbeat assessment of the economic leading indicators and many market players believe the BOJ may feel less aggressive with its monetary policy ahead and it may be less likely to move forceful devaluation of the Yen. However, a set of overall good US employment numbers later today could reverse that sentiment. However, if there is a disappointment in those numbers the Yen could add to its current rally.
Technical Outlook
JPY (SEP): Daily stochastics are trending lower but have declined into oversold territory. The close below the 9-day moving average is a negative short-term indicator for trend. The market setup is somewhat negative with the close under the 1st swing support. The next downside target is 99.37. The next area of resistance is around 100.20 and 100.64, while 1st support hits today at 99.56 and below there at 99.37.