The Yen is technically forming a potential rebound as it made new lows while the daily slow stochastics made a higher low. Fundamentally, economic news has been mixed with the general consensus being that eventually the BOJ and Abe’s government are going to need more stimulus magic. Because of the lack of Japanese news, today’s pricing will focus on the US data. The last two trading sessions were Yen positive; today’s movement could be muted unless the US data is extremely positive.
Technical Outlook
JPY (SEP): A bullish signal was given with an upside crossover of the daily stochastics. Rising from oversold levels, daily momentum studies would support higher prices, especially on a close above resistance. The close above the 9-day moving average is a positive short-term indicator for trend. A positive setup occurred with the close over the 1st swing resistance. The next upside target is 101.52. Short-term indicators suggest buying dips today. The next area of resistance is around 101.06 and 101.52, while 1st support hits today at 100.08 and below there at 99.56.