Flight to quality, safe haven, carry and other story lines have thrust the Yen back into favor. Part of the risein the Yen is the result of a lack of alternatives and part of the rise is the result of status quo policy directives fromthe US Fed yesterday. While the path of least resistance is pointing upward, initial resistance is seen at 98.83 andthen again up at 98.99. Support moves up to 98.62.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a movelower if support levels are taken out. The market’s close above the 9-day moving average suggests the short-termtrend remains positive. The market could take on a defensive posture with the daily closing price reversal down. Itis a slightly negative indicator that the close was lower than the pivot swing number. The next downside objectiveis now at 98.00. The next area of resistance is around 98.65 and 98.85, while 1st support hits today at 98.23 andbelow there at 98.00.