The continued erosion of safe-haven support has kept the Yen fairly subdued this morning, althoughsluggish Japanese equities have provided enough support to prevent a further extension of last Friday’s sell off.With little in the way of major Japanese economic data until later this month, it may be difficult for the Yen toshake off market expectations of an accommodative Bank of Japan well into the future. The Yen may still havethe upper hand on the Dollar as a safe-haven destination until US data shows consistently improvement, but thatmay be of little benefit if global risk sentiment continues to show steady improvement. The December Yen mayclimb up toward the 101.52 level later this morning, and will continue to be the safe-haven destination of choiceuntil US data shows consistently positive results.
Technical Outlook
JPY (DEC): Daily stochastics are trending lower but have declined into oversold territory.The close below the 9-day moving average is a negative short-term indicator for trend. The outside day down andclose below the previous day’s low is a negative signal. The close below the 1st swing support could weigh on themarket. The next downside objective is now at 100.41. The next area of resistance is around 101.85 and 102.61,while 1st support hits today at 100.75 and below there at 100.41.