With a pattern of higher lows, the bias in the Yen remains up. Increased tensions with China over some disputed islands might limit the Yen’s rise but the Yen might also draft some lift from news reports that Japanese regulators have started to look into Japanese Bank exposure to rising rates, as that would seem to provide the Yen with positive views toward the struggling Japanese economy. Up-trend channel support in the September Yen is seen today at 97.53.
Technical Outlook: The daily stochastics gave a bullish indicator with a crossover up. Momentum studies are trending higher from mid-range, which should support a move higher if resistance levelsare penetrated. The market’s short-term trend is positive on the close above the 9-day moving average. Themarket has a bullish tilt coming into today’s trade with the close above the 2nd swing resistance. The near-termupside target is at 98.75. The next area of resistance is around 98.40 and 98.75, while 1st support hits today at97.58 and below there at 97.10.