Weak Chinese economic data, weak global equity market action and softer US data flows have seeminglyunderpinned the March Yen above thickening consolidation support down at 97.50. Closer in support is seen at97.65 and the top of the consolidation isn’t seen until the 98.65 level. The biggest support to the Yen this morningprobably comes from the 7 month low in Chinese PMI readings and seeing slack US data again later this morningmight allow the Yen to simply win by default today.
Technical Outlook: The moving average crossover down (9 below 18) indicates a possibledeveloping short-term downtrend. Declining momentum studies in the neutral zone will tend to reinforce lowerprice action. The close below the 9-day moving average is a negative short-term indicator for trend. It is a slightlynegative indicator that the close was under the swing pivot. The next downside objective is 97.21. The next areaof resistance is around 98.10 and 98.50, while 1st support hits today at 97.46 and below there at 97.21.