After making a new low for the move, the Yen bounced all the way back above the 100.00 level and wouldstill be on course for posting a hook reversal with a positive close later today. While Japanese equities ran out ofsteam after their strong performance last week, there has been little else to provide the Yen with any fresh doseof safe-haven support. With this week’s Bank of Japan meeting likely to reiterate their aggressive easingmeasures, the Yen appears to have limited near-term upside potential. The December Yen could retest the100.22 overnight high with weak US housing data later this morning, but will still have a difficult time overcomingthis month’s severe chart damage if global risk appetites continue to improve.
Technical Outlook
JPY (DEC): Daily stochastics are trending lower but have declined into oversold territory.The market’s short-term trend is negative as the close remains below the 9-day moving average. It is a slightlynegative indicator that the close was lower than the pivot swing number. The next downside target is now at99.30. Some caution in pressing the downside is warranted with the RSI under 30. The next area of resistance isaround 100.03 and 100.30, while 1st support hits today at 99.53 and below there at 99.30