Tight coiling in the Yen seems to suggest an impending decision by the currency trade on the direction ofthe Yen. With ongoing gains in the Euro, talk of global stimulus efforts from the G20 and a slight decline inUkraine fears, that might leave the Yen facing a slightly bearish near term outlook. Down trend channel resistanceis seen today at 98.37 and that resistance falls down to 98.30 on Tuesday. Pushed into the Yen this week wewould favor the downside with a target of 96.72.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and willtend to support reversal action if it occurs. The close below the 9-day moving average is a negative short-termindicator for trend. The market’s close below the pivot swing number is a mildly negative setup. The nextdownside objective is now at 97.02. The next area of resistance is around 97.80 and 98.03, while 1st support hitstoday at 97.30 and below there at 97.02.