The Yen is garnering some indirect lift from overt weakness in the Euro and Swiss. However, the Yen isalso seeing some support from improved economic signals, which came from upwardly revised 1st quarter growthestimates that in turn seemed to be the result of greater investment by Japanese companies. Limiting the upsidein the Yen is the fear that 2nd quarter growth might be negative because of the implementation of a nationwidesales tax. Therefore the upside potential in the Yen would seem to be restricted, with initial resistance pegged at98.00 even and then again up at 98.28.
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 lower than the pivotswing number. The next downside objective is now at 97.28. The next area of resistance is around 97.65 and97.79, while 1st support hits today at 97.40 and below there at 97.28.