Apparently the sharp range up effort last week was rejected soundly and some of the flight to qualityinterest in the Yen has waned. Strong performance in Japanese equities would also seem to suggest that theattempt to return to the top of the last 6 months consolidation zone has run its course. One might suggest that theSeptember Yen sits today at the center of its 2014 range with the tide shifting in favor of the bear camp. However,one should expect downside action to be limited, as the action in the currency markets is likely to be centered inthe Dollar and or the Euro.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce amove higher if resistance levels are taken out. The market’s short-term trend is positive on the close above the 9-day moving average. With the close higher than the pivot swing number, the market is in a slightly bullish posture.The near-term upside target is at 98.74. The next area of resistance is around 98.32 and 98.74, while 1st supporthits today at 97.70 and below there at 97.50.