Comments from the BOJ that they aren’t overly concerned about downside risks in the Japanese economyand some recovery in the Chinese currency would seem to reduce the safe haven support angle in the Yen today. Critical support is seen down at 97.44 and then again down at 97.25 and we think a pattern of lower highs is setto extend ahead, as the Yen falls back toward the lowest levels seen since January 29th.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may bedrying up soon. A positive signal for trend short-term was given on a close over the 9-bar moving average. Marketpositioning is positive with the close over the 1st swing resistance. The next downside target is now at 97.18. Thenext area of resistance is around 98.18 and 98.45, while 1st support hits today at 97.55 and below there at 97.18.