A decline below a critical moving average and an additional downside extension overnight leaves the bearcamp in firm control. It would seem like the improvement US economic sentiment is partly responsible for the safehaven liquidation in the Yen and in the face of more positive US data ahead, we can’t rule out a possible return tothe 2014 consolidation lows down at 96.00 in the June Yen. Initial support and a target for the coming twosessions is 96.87.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and willtend to support reversal action if it occurs. The market’s close below the 9-day moving average is an indicationthe short-term trend remains negative. It is a slightly negative indicator that the close was under the swing pivot.The next downside objective is 97.32. The next area of resistance is around 97.68 and 97.87, while 1st supporthits today at 97.40 and below there at 97.32.