After a month long sideways consolidation, the Yen has climbed out of the formation to the upside. Signs ofpositive economic progression in China might be serving to lift the Yen, but news that Japanese May jobless ratesfell to the lowest level since late 1997, suggests that some of the rise in the Yen this week is justified by improvingdomestic fundamentals. Up-trend channel support in the September Yen is seen at 98.21 today but that supportrises to 98.26 on Monday. There might be little in the way of resistance seen until the 99.00 level.
Technical Outlook: Momentum studies trending lower at mid-range could accelerate a pricebreak if support levels are broken. The close above the 9-day moving average is a positive short-term indicator fortrend. The market’s close below the pivot swing number is a mildly negative setup. The next downside target isnow at 98.02. The next area of resistance is around 98.54 and 98.75, while 1st support hits today at 98.18 andbelow there at 98.02.