A pattern of lower highs looks to extend in the Yen as Japanese business sentiment improved overnight and the Nikkei continues to rise and that should leave the Yen feeling the impact of modest safe haven longliquidation pressure. However, we would not expect much movement in the Yen on the downside with supportfairly close-in on the charts at 98.24. In the end, action in the currency markets is likely to center on the Pound,Euro and Dollar and not in the yen.
Technical Outlook: A bearish signal was triggered on a crossover down in the daily stochastics.Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. Theclose above the 9-day moving average is a positive short-term indicator for trend. The swing indicator gave amoderately negative reading with the close below the 1st support number. The next downside target is now at98.28. The next area of resistance is around 98.69 and 98.89, while 1st support hits today at 98.39 and belowthere at 98.28.