The Yen has found its footing after Wednesday’s sharp slide, but for the moment is showing few signs of putting together any extensive recovery. Weak Japanese data appears to have caught up with the Yen, as thereis more and more talk in the market that the BOJ may step back in with fresh easing measures by the end of thisyear. With safe haven flows still preferring the Dollar, a rebound to the 97.48 level may be as far as the Yen canrecover in front of tomorrow’s Non-Farm Payroll number.
Technical Outlook: The downside crossover (9 below 18) of the moving averages suggests adeveloping short-term downtrend. Daily stochastics are trending lower but have declined into oversold territory.The close below the 9-day moving average is a negative short-term indicator for trend. There could be some earlypressure today given the market’s negative setup with the close below the 2nd swing support. The next downsideobjective is 96.39. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area ofresistance is around 97.76 and 98.40, while 1st support hits today at 96.76 and below there at 96.39.