The Yen remains squarely on the defensive this morning as prices continue to slide further into new lowground. Comments by BOJ Governor Kuroda that they will do their utmost to restrict an increase in Japaneselonger-term yields has applied further pressure to the Yen, which was done few favors by a Bank of Japanmeeting this week that reaffirmed their aggressive easing measures and a firm 2% inflation target. Unless there isa significant revival of flight-to-safety flows over the near future, the Yen looks to have much further downside leftto go. The December Yen may find support at the early July low of 98.60, and looks to finish up with a fourthstraight weekly loss.
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 market’s short-term trend is negative as the close remains belowthe 9-day moving average. The market is in a bearish position with the close below the 2nd swing supportnumber. The next downside target is 98.04. Some caution in pressing the downside is warranted with the RSIunder 30. The next area of resistance is around 99.45 and 100.27, while 1st support hits today at 98.33 andbelow there at 98.04.