Being the safe-haven destination of choice has not worked well for the Yen late this week, as the markethas been probing the downside early in today’s session. Japanese equities are on a 4-session winning streak,which has weakened a prime source of flight to safety flows into the Yen. As long as market optimism builds overa resolution to Washington budget problems, the Yen is likely to find additional pressure heading into theweekend. The December Yen should find decent support on any retest of the 101.51 overnight low, but is likely toremain on the defensive as long as global risk appetites continue to improve.
Technical Outlook
JPY (DEC): Momentum studies are trending lower from high levels which shouldaccelerate a move lower on a break below the 1st swing support. The market back below the 18-day movingaverage suggests the intermediate-term trend could be turning down. The defensive setup, with the close underthe 2nd swing support, could cause some early weakness. The next downside objective is now at 101.09. Thenext area of resistance is around 102.31 and 103.02, while 1st support hits today at 101.35 and below there at101.09.