With the BOJ overnight suggesting that US tapering is a good thing for the world economy, Japan posting a27% increase in exports to China in the month of February and the BOJ suggesting that it would take a majorevent to justify more easing, the fundamental path of least resistance in the Yen looks to be down. Other exportgains from Japan, from the overnight trade, showed a rise in February exports to Asia of 12%, a rise exports tothe US of 5% and a rise in exports to Europe of 13%. Selling resistance is seen up at 98.81 and a downsidetarget is seen down at 97.04.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory,so some caution is warranted. The market’s short-term trend is positive on the close above the 9-day movingaverage. The daily closing price reversal up on the daily chart is somewhat positive. A positive setup occurredwith the close over the 1st swing resistance. The next upside target is 99.22. The next area of resistance isaround 98.97 and 99.22, while 1st support hits today at 98.31 and below there at 97.89.