The Chinese export news has provided some support to the Yen against what appeared to be anentrenching down draft on the charts last week. Clearly the Chinese data is discouraging to the Japaneseeconomy, especially with 4th quarter Japanese growth and trade data coming in weak. The trend remains downbut a measure of uncertainty looks to slow the rate of decline in the Yen. Rallies should be sold looking for aneventual retest of consolidation support down at 95.62.
Technical Outlook: The major trend has turned down with the cross over back below the 60-daymoving average. Momentum studies are still bearish but are now at oversold levels and will tend to supportreversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day movingaverage. It is a slightly negative indicator that the close was under the swing pivot. The next downside target isnow at 95.95. The next area of resistance is around 97.25 and 97.68, while 1st support hits today at 96.39 andbelow there at 95.95.