While the Yen remains subdued early this week, prices have still fallen down to a new 3-week low early intoday’s session. Weaker than expected results on Japanese Unemployment and Retail Trade are making it moredifficult for the Yen to regain lost ground, but prices were able to avoid a retest of the key 98.00 level during theovernight session. There are news reports that the BOJ could add to their stimulus measures if Japanese exportscontinue to sag, however, which is likely to keep the Yen on the defensive during today’s trading.
Technical Outlook: The market back below the 40-day moving average suggests the longertermtrend could be turning down. Momentum studies trending lower at mid-range could accelerate a price breakif support levels are broken. The market’s close below the 9-day moving average is an indication the short-termtrend remains negative. The market’s close below the pivot swing number is a mildly negative setup. The nextdownside objective is 98.06. The next area of resistance is around 98.27 and 98.37, while 1st support hits todayat 98.11 and below there at 98.06.