With strength in the Dollar and disappointing Japanese domestic auto sales figures for May releasedovernight, the bear camp starts the new trading week in the Yen with a distinct edge. Initial support in the JuneYen is seen down at 97.87 and one would think that the Yen and the Japanese economy would garner somebenefit from upbeat Chinese manufacturing results and that news could help the Yen respect last week’s lows.
Technical Outlook: Momentum studies trending lower at mid-range could accelerate a pricebreak if support levels are broken. The market’s close below the 9-day moving average is an indication the shorttermtrend remains negative. It is a slightly negative indicator that the close was lower than the pivot swingnumber. The next downside objective is now at 97.97. The next area of resistance is around 98.43 and 98.66,while 1st support hits today at 98.09 and below there at 97.97.