The Yen remains pinned down near the recent lows and it seemingly remains in a downward bias on itscharts. Another issue that continues to favor the downside is an ongoing extraction of safe haven premium fromthe Yen in the wake of positive economic dialogue from the BOJ. Apparently the BOJ suggested that demandexceeded supply in the Japanese economy for the first time since the April/June period of 2008. Initial supportand targeting for the September yen is seen down at 98.19 and then down at 98.01.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Decliningmomentum studies in the neutral zone will tend to reinforce lower price action. The market back below the 18-daymoving average suggests the intermediate-term trend could be turning down. The market’s close below the pivotswing number is a mildly negative setup. The next downside objective is now at 98.08. The next area ofresistance is around 98.55 and 98.75, while 1st support hits today at 98.21 and below there at 98.08.