The Yen has fallen back from its recent highs in the wake of disappointing Japanese leading indicatorreadings. In fact, press outlets are touting the Japanese leaders as the softest readings since the sub-prime crisis and that rekindles deflationary concerns in Japan again. With sharp declines in global equities, it is possible thatrenewed safe haven/carry trade interest will foster a near term return to levels back above 97.50.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may bedrying up soon. A negative signal for trend short-term was given on a close under the 9-bar moving average.Since the close was above the 2nd swing resistance number, the market’s posture is bullish and could see moreupside follow-through early in the session. The next downside objective is now at 95.75. The next area ofresistance is around 97.38 and 97.63, while 1st support hits today at 96.44 and below there at 95.75.