While the Yen could have derived some support from safe haven interest in the wake of disappointing global economic news flow overnight, that angle was dashed by news that the Japanese economy has slowedmore than was expected off an earlier tax hike. In short, there is little reason to hold the Yen in the near term andthat sets the stage for a near term decline back to the late July lows of 97.02.
Technical Outlook: Momentum studies are trending higher from mid-range, which should support a move higher if resistance levels are penetrated. The close above the 9-day moving average is apositive short-term indicator for trend. The market’s close below the pivot swing number is a mildly negative setup.The next upside objective is 98.09. The next area of resistance is around 97.96 and 98.09, while 1st support hitstoday at 97.70 and below there at 97.58.