In the face of soft Japanese data and a surprising tightening move by China, the Yen has started out on aweaker footing. Ideas that the BOJ will continue to provide support to the Japanese economy, kept the focusaway from slack Japanese data from last week and that in turn resulted in a slight downside breakout in theMarch Yen. Critical support remains at 97.38 today but somewhat lower support is also seen down at 97.17.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a movelower if support levels are taken out. The market’s short-term trend is positive on the close above the 9-daymoving average. A positive setup occurred with the close over the 1st swing resistance. The next downsideobjective is 97.34. The next area of resistance is around 98.66 and 98.97, while 1st support hits today at 97.84and below there at 97.34.