While the June Yen managed an upside breakout yesterday, the trade was unable to hold those gainsdespite seeing some rather impressive Japanese Machinery orders results yesterday. With the June Yenseemingly rejecting a sell off attempt overnight and Japanese economic data leaving the Yen with a very slightedge, we have to leave the path of least resistance pointing upward. Up-trend channel support today comes indown at 98.29 but that trend line support comes in 98.41 on Wednesday.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory,so some caution is warranted. The market’s short-term trend is positive on the close above the 9-day movingaverage. It is a mildly bullish indicator that the market closed over the pivot swing number. The next upside targetis 99.12. The next area of resistance is around 98.83 and 99.12, while 1st support hits today at 98.36 and belowthere at 98.17.