A loss of upside momentum in the Yen has resulted in significant consolidation resistance left up around the98.72 level. We can’t argue against a near term decline to recent consolidation support of 97.94 and perhapseven a return down to the 97.50 level especially if economic views toward China deteriorate in the days ahead.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels.The close above the 9-day moving average is a positive short-term indicator for trend. The downside closing pricereversal on the daily chart is somewhat negative. The market tilt is slightly negative with the close under the pivot.The next upside objective is 98.98. The next area of resistance is around 98.69 and 98.98, while 1st support hitstoday at 98.15 and below there at 97.90.