While the Yen is finding little benefit from flight-to-safety flows this week, it is managing to consolidate within last Friday’s already tight trading range. With lukewarm Japanese inflation data weighing on prices early thisweek, the market may be waiting on tonight’s Unemployment and Retail Trade data before giving the Yen anybenefit of the doubt. The September Yen could slide further to the 98.00 level later today, but a larger downsidemove may wait until tonight’s key Japanese data is out of the way.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lowerespecially if support levels are taken out. A negative signal for trend short-term was given on a close under the 9-bar moving average. It is a slightly negative indicator that the close was lower than the pivot swing number. Thenext downside target is now at 98.00. The next area of resistance is around 98.33 and 98.45, while 1st supporthits today at 98.11 and below there at 98.00.