positive read for Japanese Housing Starts has done little to put the brakes on the Yen’s downtrend asprices have dropped further into new low ground coming into this morning’s trading. Japanese equities have risento multi-year highs this week, which continues to erode the Yen’s safe-haven appeal while comments by Bank ofJapan Governor Kuroda that they will maintain an “ultra-easy” monetary policy stance until their 2% inflationtarget has been met are also weighing heavily on prices. A move through the key 95.00 level may be difficultheading into year-end, but the Yen is likely to remain squarely on the defensive during today’s session. TheMarch Yen may find support around the 95.28 level this morning, and would need to see a poor set of JoblessClaims numbers in order to lift clear of today’s early lows.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. The market’s closebelow the pivot swing number is a mildly negative setup. The next downside target is now at 95.72. The market isapproaching oversold levels on an RSI reading under 30. The next area of resistance is around 96.12 and 96.23,while 1st support hits today at 95.87 and below there at 95.72.