Like the Euro, the Yen is garnering a windfall from the overt weakness in the Dollar and also because ofslightly upbeat economic dialogue flowing from Japanese officials. However, the upside in the yen is probablylimited and step wise gains are likely to be narrow, as flight to quality interest in the Yen is being held in check, bysoaring optimism toward Europe and the UK.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication.Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels arepenetrated. The market now above the 18-day moving average suggests the intermediate-term trend has turnedup. The close over the pivot swing is a somewhat positive setup. The near-term upside target is at 98.33. Thenext area of resistance is around 98.11 and 98.33, while 1st support hits today at 97.75 and below there at 97.60.