The March Yen has remained weak on the charts this morning, despite a slight up tick in Japanese pricemeasures. In other words, data tempering the deflationary spiral fear in Japan were largely ignored, perhapsbecause of lingering fears of slowing in China. Until the Chinese economic vibe improves, we have to leave theedge with the bear camp in the Yen. However, traders might consider lowering profit stops on short positions on adaily basis now. To signal a reversal of a long held down trend pattern, might require a rally back above a downtrend channel resistance line up at 96.10. That down trend channel resistance line falls to 95.97 on Friday.
Technical Outlook: Daily momentum studies are on the rise from low levels and shouldaccelerate a move higher on a push through the 1st swing resistance. The close below the 9-day moving averageis a negative short-term indicator for trend. The close below the 1st swing support could weigh on the market. Thenext upside objective is 95.85. The next area of resistance is around 95.66 and 95.85, while 1st support hits todayat 95.22 and below there at 94.96.