After reaching a new low for the move last night, the Yen has clawed its way back into positive territory topost moderate gains this morning. A failure of Japanese equities to climb up into new high ground, along with amodest recovery in Japanese Consumer Sentiment, may have been enough for the Yen to find its footing thismorning. As long as global risk sentiment is on the mend, however, the continued erosion of safe-haven supportwill keep the Yen on the defensive this week. The December Yen could follow-through by climbing up to the 97.18level later this morning, but looks to have limited upside as long as flight-to-safety concerns remain a”backburner” issue for global markets.
Technical Outlook: The daily stochastics gave a bearish indicator with a crossover down. Dailystochastics declining into oversold territory suggest the selling may be drying up soon. The close below the 9-daymoving average is a negative short-term indicator for trend. It is a slightly negative indicator that the close waslower than the pivot swing number. The next downside objective is now at 96.47. Some caution in pressing thedownside is warranted with the RSI under 30. The next area of resistance is around 96.99 and 97.30, while 1stsupport hits today at 96.57 and below there at 96.47.