Safe-haven support continues to drain from the Yen this morning as prices have reached their lowest levelssince October 1st. Japanese equities came out of their holiday weekend by posting their fifth straight gain, addingto the pressure on the Yen from positive budget developments out of Washington. With the Yen now slidingfurther below its 50-day moving average as well, it will be difficult to regain upside momentum without globalmarkets shifting back into a “risk off” mood later today. The December Yen could fall back towards the 101.24level this morning, and may have to wait for upcoming Japanese economic data in order to find its footing.
Technical Outlook
JPY (DEC): Declining momentum studies in the neutral zone will tend to reinforce lowerprice action. The market’s close below the 9-day moving average is an indication the short-term trend remainsnegative. The market tilt is slightly negative with the close under the pivot. The next downside target is 101.13.The next area of resistance is around 101.77 and 102.12, while 1st support hits today at 101.28 and below thereat 101.13.