Yesterday’s early session sell off by the Yen hit lows not seen in several weeks only to experience a quick reversal back above the 100 mark. Both against the Dollar and the Euro, the Yen ended positive on the day. Today’s positive price action was started by a lower than expected Core Machinery Order number and then exacerbated by the Yen’s safe haven status pushing the Yen higher across the board. Continued upward movement for the session now hinges on US data. If the US data is positive for the Dollar the Yen will fall off, if negative for the Dollar then there could be even a greater rally in the Yen.
Technical Outlook
JPY (SEP): Daily stochastics declining into oversold territory suggest the selling may be drying up soon. The close below the 9-day moving average is a negative short-term indicator for trend. The daily closing price reversal up on the daily chart is somewhat positive. A positive setup occurred with the close over the 1st swing resistance. The next downside objective is 99.20. The next area of resistance is around 100.61 and 100.81, while 1st support hits today at 99.81 and below there at 99.20.