The December Yen continues to benefit from the Dollar’s distress, but was unable to climb above its late September highs as safe-haven support has been unable to fully overcome last night’s weak Japanese Leading Indicators reading. Japanese equities continued their extended slide into this week, which will put additional pressure on the Bank of Japan to maintain their aggressive easing measures well into the future. The Yen will remain fairly well supported as long as the market focuses on the Washington budget impasse, but any definitive signs of progress there could lead to a sharp pullback. The December Yen may reach up towards the 103.35 area later this morning, but clearly is vulnerable to a negative turnaround if there are positive signs out of Washington
Technical Outlook
JPY (DEC): Rising stochastics at overbought levels warrant some caution for bulls. The close above the 9-day moving average is a positive short-term indicator for trend. It is a slightly negative indicator that the close was lower than the pivot swing number. The next upside objective is 103.36. The next area of resistance is around 102.97 and 103.36, while 1st support hits today at 102.41 and below there at 102.23