The Yen has regained some bullish traction in the wake of rising uncertainty in the West. We also think thatsome of the gains in the Yen this week are the result of slack US economy data which in turn has prompted somecapital flow back toward the Yen. On the other hand, low inflation readings in Japan leaves the door open foradditional easing and that is limiting to the upside in the Yen. In short, the Yen is expected to win by default butgains might be hard fought and difficult to sustain. Near term support in the June Yen rises to 97.58 andresistance isn’t seen until the 98.21 level.
Technical Outlook: The cross over and close above the 60-day moving average is an indicationthe longer-term trend has turned positive. Momentum studies trending lower at mid-range could accelerate a pricebreak if support levels are broken. The market’s short-term trend is negative as the close remains below the 9-daymoving average. The market has a slightly positive tilt with the close over the swing pivot. The next downsidetarget is 97.21. The next area of resistance is around 98.07 and 98.30, while 1st support hits today at 97.53 andbelow there at 97.21.