Weakness in the Dollar combined with positive BOJ dialogue overnight has launched the Yen into a freshupside extension. With the initial rise above the 97.50 level and rather upbeat economic views floated by a BOJ’sKuroda overnight, the Yen has seen a combination of technical short covering buying and perhaps even somefresh outright speculative buying. The first resistance level in the June Yen is seen at 98.05.
Technical Outlook: The daily stochastics gave a bullish indicator with a crossover up. Dailystochastics are showing positive momentum from oversold levels, which should reinforce a move higher if nearterm resistance is taken out. The market’s close above the 9-day moving average suggests the short-term trendremains positive. It is a mildly bullish indicator that the market closed over the pivot swing number. The near-termupside objective is at 97.37. The next area of resistance is around 97.24 and 97.37, while 1st support hits today at96.86 and below there at 96.62.