Disappointing Japanese Consumer Spending results have surprised BOJ officials and the market as the trade initially thought the impact of the tax hike was very limited. With solid Chinese factory order results overnightcombined with somewhat favorable Euro zone economic news one could also suggest that the Yen shouldencounter fresh selling from a decline in safe haven interest. Near term downside targeting in the September Yenin the coming sessions is seen down at 98.27.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce amove higher if resistance levels are taken out. The market’s short-term trend is negative as the close remainsbelow the 9-day moving average. The market tilt is slightly negative with the close under the pivot. The near-termupside objective is at 98.81. The next area of resistance is around 98.66 and 98.81, while 1st support hits today at98.44 and below there at 98.36.