With weaker equity market action, noted weakness in the Dollar and the prospect of soft US scheduled datalater today, the flight to quality crowd in the Yen gets a near term window of opportunity. However, important GDPfigures next week from Japan are likely to reign in gains in the Yen and could eventually set the stage for a returnto the January lows. In the mean time, a short term bounce in the March Yen is possible up to 98.60.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lowerprice action. A negative signal for trend short-term was given on a close under the 9-bar moving average. It is aslightly negative indicator that the close was lower than the pivot swing number. The next downside target is97.18. The next area of resistance is around 97.74 and 97.99, while 1st support hits today at 97.34 and belowthere at 97.18.