Safe-haven support is providing little if any benefit for the Yen, as this week’s recovery move failed to retestthe 98.00 level before losing upside momentum and heading lower. The prospects for fresh BOJ easingmeasures in the New Year is clearly weighing on the Yen, which failed to find any meaningful support fromsluggish Japanese equities. Weak US data later today would clearly provide a boost the Yen, but the near-termupside appears to be limited at best given that this longer-term downtrend has much more downside left to gobefore finding any sort of “floor” price level. The March Yen may retest the overnight low of 97.20 level later today,with any rebound back towards the 98.00 area viewed as an opportunity to approach the short side of the market.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication.Rising from oversold levels, daily momentum studies would support higher prices, especially on a close aboveresistance. The market’s close above the 9-day moving average suggests the short-term trend remains positive.With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next upsideobjective is 98.36. The next area of resistance is around 98.04 and 98.36, while 1st support hits today at 97.28and below there at 96.83.