The Yen is showing almost no reaction to overnight news of another BOJ stimulus move. Apparently themarkets wanted even more significant stimulus and even bolder reforms to stimulate the struggling Japaneseeconomy. Over the long run some economists think the latest stimulus efforts could boost Japanese growth by asmuch as 1% to 1.5%. Expect the Yen to continue to coil inside a range defined as 98.35 and 97.85.
Technical Outlook: The cross over and close above the 40-day moving average indicates thelonger-term trend has turned up. Momentum studies are trending higher from mid-range, which should support amove higher if resistance levels are penetrated. The market’s short-term trend is positive on the close above the9-day moving average. The market has a slightly positive tilt with the close over the swing pivot. The next upsidetarget is 98.44. The next area of resistance is around 98.31 and 98.44, while 1st support hits today at 98.01 andbelow there at 97.83.