Softer Japanese inflation readings overnight add to disappointment earlier this week that retail sales wereindeed negatively impacted by tax changes. Damage on the charts, a lack of safe haven interest in the Yen andovert strength in the Dollar would seem to project a near term slide in the September Yen to at least 98.00. Moresignificant consolidation support in the September Yen is seen down at 97.87.
Technical Outlook: A bearish signal was triggered on a crossover down in the daily stochastics.Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are takenout. The market’s close below the 9-day moving average is an indication the short-term trend remains negative.The market is in a bearish position with the close below the 2nd swing support number. The next downside targetis 97.93. The next area of resistance is around 98.49 and 98.78, while 1st support hits today at 98.07 and belowthere at 97.93.