The Yen remains vulnerable on its charts and it also remains vulnerable to its economic condition. With thetankan survey coming in weaker than expected, the threat of spiraling deflation remains in place and the prospectof even more BOJ easing hangs over the currency. In the short term a slide down to 96.41 is seen but a moresignificant slide down to 95.48 might be seen if US data shows any improvement and Dollar pressure adds to themacro economic weight hanging on the Yen.
Technical Outlook: The downside crossover of the 9 and 18 bar moving average is a negativesignal. Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action ifit occurs. A negative signal for trend short-term was given on a close under the 9-bar moving average. Themarket tilt is slightly negative with the close under the pivot. The next downside target is 96.36. The next area ofresistance is around 97.21 and 97.57, while 1st support hits today at 96.61 and below there at 96.36.