With a partial holiday thinning conditions in the Yen, the slight downside breakout on the charts might bediscounted. However, flight to quality interest in the Yen is expected to wane today in the wake of higher equitiesand sharply lower US Treasury market action. On the other hand, the June Yen has built significant consolidationsupport around the 97.37 level and without a major fundamental development it could be difficult to push the Yendown until the FOMC statement on Wednesday and perhaps not until the US Non-Farm payroll results on Friday.
Technical Outlook: The major trend has turned down with the cross over back below the 60-daymoving average. Declining momentum studies in the neutral zone will tend to reinforce lower price action. Themarket back below the 18-day moving average suggests the intermediate-term trend could be turning down. Themarket setup is somewhat negative with the close under the 1st swing support. The next downside target is97.10. The next area of resistance is around 97.90 and 98.25, while 1st support hits today at 97.33 and belowthere at 97.10.