A steady erosion of safe haven support, both from stronger Japanese equities and from a lack of freshheadlines out of Iraq and Ukraine, has kept the Sept Yen on the defensive going into this morning’s trading. Arebound to the 50-day moving average at 98.09 could occur late in the day if the Fed disappoints the markets, butthe Yen would likely need to see fresh flight to safety inflow to put the brakes on this recent down move. The SeptYen may be heading for consolidation support at 97.54 later today, and could be setting up for an extended movelower over the next few sessions.
Technical Outlook: The close under the 40-day moving average indicates the longer-term trendcould be turning down. Momentum studies are trending higher from mid-range, which should support a movehigher if resistance levels are penetrated. The intermediate trend has turned down with the cross over back belowthe 18-day moving average. The market’s close below the 1st swing support number suggests a moderatelynegative setup for today. The next upside target is 98.44. The next area of resistance is around 98.17 and 98.44,while 1st support hits today at 97.75 and below there at 97.59.