A flurry of dialogue from the BOJ overnight would seem to have sparked a wave of buying in the Yen butsome of the recent buying might have been technical short covering. In fact, disappointing retails sales data out ofJapan overnight failed to keep the Nikkei lower into the close, as it finished higher for the sixth consecutivesession. However, BOJ officials continue to tout a return toward normal and that seems to have provided the JuneYen with some sense of solid support above the 98.00 level. On the other hand, with the BOJ suggesting thatdownside risks are somewhat lower, that hardly presents an environment that is likely to attract significant andsustained inflows into the Yen.
Technical Outlook:Declining momentum studies in the neutral zone will tend to reinforce lowerprice action. The market’s close below the 9-day moving average is an indication the short-term trend remainsnegative. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The nextdownside objective is now at 97.83. The next area of resistance is around 98.41 and 98.60, while 1st support hitstoday at 98.03 and below there at 97.83.