A further decline in global uncertainty has applied pressure to the Yen. In addition to declining Ukraineuncertainty, the markets also appear to be cheered by Chinese government dialogue and positive Euro zone data flows. Therefore, it could be difficult to avoid a retest of the 97.50 level and even lower in the event that globalequities make it through the coming 3 trading sessions in a positive track.
Technical Outlook: The upside crossover (9 above 18) of the moving averages suggests adeveloping short-term uptrend. Momentum studies are trending higher from mid-range, which should support amove higher if resistance levels are penetrated. The close under the 18-day moving average indicates theintermediate-term trend could be turning down. There could be some early pressure today given the market’snegative setup with the close below the 2nd swing support. The next upside objective is 98.85. The next area ofresistance is around 98.22 and 98.85, while 1st support hits today at 97.37 and below there at 97.14.