Apparently the outlook for the Japanese economy is improving at the same time that safe haven interest inthe Yen (off slowing fears in the US and Euro zone) is on the rise. With Japanese Industrial production overnightposting a rise of +0.7% and the US Industrial production readings yesterday posting a decline of 0.6%, it isn’tsurprising that the Yen is poised to retest the highest levels in nearly 3 1/2 months. Limiting the upside in the Yenwas a decline in the Nikkei and ideas that the June Yen has significant consolidation high resistance on the chartsaround 98.65 to 98.75.
Technical Outlook: The daily stochastics gave a bullish indicator with a crossover up.Momentum studies are trending higher from mid-range, which should support a move higher if resistance levelsare penetrated. A positive signal for trend short-term was given on a close over the 9-bar moving average. Theclose over the pivot swing is a somewhat positive setup. The near-term upside target is at 99.22. The next area ofresistance is around 98.89 and 99.22, while 1st support hits today at 98.09 and below there at 97.61.