A fresh upside breakout on the charts in the Yen overnight was made possible by ongoing ideas that theJapanese sales tax hike hasn’t held back growth as much as was feared. However, the Yen might also bebenefiting from the uncertainty flowing from the slide in US equities and by the unimpressive economic signalsflowing from China. The trend is up in the Yen but the rate of gain looks to remain narrow in the days ahead.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higherprice action. The market’s short-term trend is positive on the close above the 9-day moving average. Since theclose was above the 2nd swing resistance number, the market’s posture is bullish and could see more upsidefollow-through early in the session. The near-term upside objective is at 98.99. The next area of resistance isaround 98.74 and 98.99, while 1st support hits today at 98.06 and below there at 97.63.