The Yen is catching some minor lift this morning off a lack of alternatives but also because of supportivecomments from the BOJ overnight. Apparently BOJ officials have indicated that the “conquest of deflation” is insight but those supportive comments were countervailed by indications that it was too early to discuss the exitfrom current easing efforts. However, the September Yen has managed to reverse a recent pattern of lower highson the charts overnight, and that could set the stage for a return to resistance of 98.96 in the September Yen.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce amove higher if resistance levels are taken out. A positive signal for trend short-term was given on a close over the9-bar moving average. The market’s close below the pivot swing number is a mildly negative setup. The nextupside target is 98.88. The next area of resistance is around 98.76 and 98.88, while 1st support hits today at98.50 and below there at 98.35.