The Yen is gaining some lift off a lack of non-Dollar alternatives and also because of some up-beat BOJeconomic views released overnight. Reports that consumption is showing signs of getting out from under theinfluence of the Japanese sales tax hike and a short term oversold technical condition, has given the Yen somemoderate short covering action this morning. However, one doesn’t get the impression that a major shift infundamentals has taken place in the Yen. On the other hand, consolidation support in the September Yen mightnow be solid down at 97.87.
Technical Outlook: The close below the 60-day moving average is an indication the longer-termtrend has turned down. Momentum studies trending lower at mid-range could accelerate a price break if supportlevels are broken. The intermediate trend has turned down with the cross over back below the 18-day movingaverage. The market is in a bearish position with the close below the 2nd swing support number. The nextdownside objective is 97.32. The next area of resistance is around 98.21 and 98.57, while 1st support hits todayat 97.59 and below there at 97.32.