There would seem to be just enough flight to quality issues to provide the Yen with a bullish tilt. It wouldalso seem as if favorable Chinese economic data has lent the Yen fresh buying interest to start the new tradingweek. BOJ comments overnight add another element of support to the Yen, as the BOJ sees a number ofreasons for economic optimism. Initial resistance and a near term target in the yen is seen up at 98.34 today andsupport today moves up to the 97.90 level.
Technical Outlook: The major trend has turned down with the cross over back below the 40-daymoving average. Momentum studies are trending higher from mid-range, which should support a move higher ifresistance levels are penetrated. A negative signal for trend short-term was given on a close under the 9-barmoving average. The close below the 1st swing support could weigh on the market. The near-term upside targetis at 98.41. The next area of resistance is around 98.21 and 98.41, while 1st support hits today at 97.85 andbelow there at 97.70.