The recent upward bid in the Yen has been reversed early today in the wake of disconcerting revelationsthat Japan’s Current Account deficit for November was the largest ever. The Yen might also have seen somepressure because of large liquidation orders in Japanese stocks or the Yen might simply be back out of favorbecause the current account deficit news suggests the Japanese export machine won’t be as big of a factor inpulling that country from spiraling deflation. Aggressive traders should look to get short the March Yen for a quickreturn to levels below 95.00.
Technical Outlook: Momentum studies are trending higher from mid-range, which shouldsupport a move higher if resistance levels are penetrated. A positive signal for trend short-term was given on aclose over the 9-bar moving average. Market positioning is positive with the close over the 1st swing resistance.The next upside target is 98.10. The next area of resistance is around 97.75 and 98.10, while 1st support hitstoday at 96.55 and below there at 95.71.