An upside breakout in the Yen to the highest level since February 5th suggests that the Japanese economyis regaining its footing. However, it is also possible that part of the Yen gains are the result of such dismalprospects in the US and parts of the Euro zone that the Yen is winning by default. Clearly comments from theBOJ overnight added to the bullish track in the Yen, which may not encounter significant resistance until the 99.29level.
Technical Outlook: Rising stochastics at overbought levels warrant some caution for bulls. Themarket’s close above the 9-day moving average suggests the short-term trend remains positive. The close overthe pivot swing is a somewhat positive setup. The next upside objective is 98.82. The next area of resistance isaround 98.65 and 98.82, while 1st support hits today at 98.35 and below there at 98.21.