The Yen opened Monday’s session with a large gap lower almost wiping out Friday’s session losses. An opening such as this shows market disappointment with Friday’s price action; meaning, Friday’s Yen rise was not a change in sentiment but a knee jerk reaction to US employment news. There may be additional buying pressure today but only to fill the gap. With little economic data scheduled, Yen movement will be focused on technicals which point to lower pricing.
Technical Outlook
JPY (SEP): Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. The outside day up and close above the previous day’s high is a positive signal. There could be more upside follow through since the market closed above the 2nd swing resistance. The next downside objective is 99.06. The next area of resistance is around 101.76 and 102.47, while 1st support hits today at 100.06 and below there at 99.06.