Positively received comments from Bank of Japan Governor Kuroda has given the Yen a moderate boostthis morning, but the continued erosion of safe-haven support is helping to keep further gains in check. RecentJapanese economic data has generally avoided any negative surprises, but there have few indications that theBOJ will be easing back on their aggressive easing measures anytime soon. There may be opportunity for freshflight to safety inflows from events in the Euro zone and the US later this week, but the Yen will continue to havelimited near-term upside potential as long as global risk appetites continue to mend. The December Yen couldrise up towards the 102.04 level if today’s US data comes in weaker than expected, but it will need a source offresh safe-haven support to build upon this week’s modest gains.
Technical Outlook
JPY (DEC): Momentum studies are still bearish but are now at oversold levels and willtend to support reversal action if it occurs. The close below the 9-day moving average is a negative short-termindicator for trend. It is a slightly negative indicator that the close was under the swing pivot. The next downsideobjective is now at 101.04. The next area of resistance is around 101.54 and 101.69, while 1st support hits todayat 101.22 and below there at 101.04.