With an upside breakout in the Yen overnight it is clear that something new is unfolding. With the BOJsuggesting they are half way to their inflation targets that is a little revealing as the BOJ has been losing thedeflation pattern for the better part of 2 decades. Dampening the upside action in the Yen is suggestions from theBOJ that there doesn’t appear to be a reason for the Yen to strengthen. Given the lack of competition within thecurrency markets, the technical breakout on the charts and the prospect for something positive from the US jobssector on Thursday morning, there might be little in the way of resistance seen in the June Yen until the 100 level.
Technical Outlook: Rising stochastics at overbought levels warrant some caution for bulls. Themarket’s short-term trend is positive on the close above the 9-day moving average. The upside closing pricereversal on the daily chart is somewhat bullish. It is a mildly bullish indicator that the market closed over the pivotswing number. The next upside objective is 99.10. The next area of resistance is around 98.94 and 99.10, while1st support hits today at 98.54 and below there at 98.29.