Talk in the press is that the Yen’s limited reaction to the most recent global financial anxiety event is a signthat its flight to safety standing is waning. We might suggest that type of sentiment shift is a sign of a return tomore normal international economic conditions, while others might suggest that building confidence in the USDollar, Pound and even the Euro, is probably siphoning off long interest from the Yen. In fact, the Yen might bepoised to engineer a slide down to the 80.00 level, as global conditions return to normal and shocks are lessdramatic and less frequent.
Technical Outlook: The major trend could be turning up with the close back above the 60-daymoving average. Rising stochastics at overbought levels warrant some caution for bulls. A positive signal for trendshort-term was given on a close over the 9-bar moving average. The outside day up is a positive signal. Themarket setup is supportive for early gains with the close over the 1st swing resistance. The near-term upsideobjective is at 99.15. The next area of resistance is around 98.59 and 99.15, while 1st support hits today at 97.09and below there at 96.16.