The BOJ’s post-meeting comments provided the catalyst for the Yen’s updraft on Tuesday, but the marketclearly got ahead of itself without the benefit of fresh risk headlines to fuel safe-haven flows. This month’sJapanese sales tax price hike may already be priced-in to the market, but any stronger than expected headwindsfor their economy could have the BOJ becoming dovish again in a hurry. Near-term support will come in aroundthe 97.80 level, but the June Yen could find severe pressure late if the FOMC Meeting Minutes come in morehawkish than expected.
Technical Outlook: The cross over and close above the 60-day moving average indicates thelonger-term trend has turned up. Momentum studies are rising from mid-range, which could accelerate a movehigher if resistance levels are penetrated. The cross over and close above the 18-day moving average indicatesthe intermediate-term trend has turned up. There could be more upside follow through since the market closedabove the 2nd swing resistance. The near-term upside objective is at 99.55. The next area of resistance is around99.07 and 99.55, while 1st support hits today at 97.57 and below there at 96.54.