Favorable Japanese economic readings released overnight would seem to leave the Yen in a downwardtrack on its charts at the start of the new trading week. An uptick in Japanese 1st quarter growth and an uptick inBank lending and Capex spending would seem to leave the bears with a fundamental edge as the Yen sees safehaven liquidation pressure. However, the propensity to consolidate is also high and it could be difficult for the Yento fall below the 97.34 support level.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. Anegative signal for trend short-term was given on a close under the 9-bar moving average. The daily closing pricereversal down is a negative indicator for prices. The market’s close below the pivot swing number is a mildlynegative setup. The next downside objective is now at 97.14. The next area of resistance is around 97.79 and98.10, while 1st support hits today at 97.31 and below there at 97.14.