With the BOJ sticking with recent economic forecasts and discounting deflation threats, the Yen finds somecapacity to consolidate on its charts. However, strong UK employment figures and anything positive from the USeconomic front could quickly restart the downward march in the Yen. Some traders think that the 95.00 levelmight be some sort of major support level with fundamental backing and given the potential gradual improvementof the world economy and the exchange rate in Japan sitting at the lowest levels since October of 2008 on themonthly charts, it is possible that a major low could develop in the Yen in the coming weeks and months.Consider a calendar call spread in the Yen: Buy a June Yen 96.50 call and sell a March Yen 96.50 call for a netcost of 100.
Technical Outlook: Momentum studies trending lower at mid-range could accelerate a pricebreak if support levels are broken. The close below the 9-day moving average is a negative short-term indicatorfor trend. It is a mildly bullish indicator that the market closed over the pivot swing number. The next downsidetarget is 95.07. The next area of resistance is around 96.30 and 96.72, while 1st support hits today at 95.48 andbelow there at 95.07.