Overnight events haven’t provided the Yen a noted increase in safe haven interest to start the new tradingweek. The Yen might have seen some support from BOJ comments overnight that suggested a lower Yen wasn’tdesirable and that the export benefit of a lower Yen has declined over time. Critical support is seen at 97.42 andthen not until the 97.19 level. Expect the Yen to continue to waffle around both sides of 97.50 until the globaleconomic outlook shows signs of improving.
Technical Outlook: The cross over and close above the 40-day moving average indicates thelonger-term trend has turned up. Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The cross over and close above the 18-day moving average indicates the intermediate-term trend hasturned up. With the close over the 1st swing resistance number, the market is in a moderately positive position.The next downside target is 97.50. The next area of resistance is around 98.13 and 98.30, while 1st support hitstoday at 97.73 and below there at 97.50.