The Yen has failed to claw out a higher high for the move despite the events in the Crimea. With higheraction in the Shanghai Composite overnight, it would also seem like anxiety toward the Chinese economy ismoderating. Therefore the safe haven/flight to quality/carry trade mentality is vulnerable at the start of the newtrading week. Another issue lending some minor pressure to the Yen this morning is up beat Japanese economicviews on Factory output. Critical support in the June Yen is seen this morning just below the early trade of 98.20.
Technical Outlook: Momentum studies are trending higher from mid-range, which shouldsupport a move higher if resistance levels are penetrated. The market’s close above the 9-day moving averagesuggests the short-term trend remains positive. It is a mildly bullish indicator that the market closed over the pivotswing number. The near-term upside target is at 99.26. The next area of resistance is around 99.06 and 99.26,while 1st support hits today at 98.41 and below there at 97.95.