Despite the large recovery effort at the end of last week, the outlook for the Yen remains suspect, especiallyin the wake of disappointing Chinese economic news flow overnight. We project the trading range in theSeptember Yen this week to be 97.92 to 97.17 which in turn points to a minor downward tilt ahead.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication.Stochastics are at mid-range but trending higher, which should reinforce a move higher if resistance levels aretaken out. A negative signal for trend short-term was given on a close under the 9-bar moving average. Theupside daily closing price reversal gives the market a bullish tilt. The close over the pivot swing is a somewhatpositive setup. The near-term upside target is at 98.23. The next area of resistance is around 98.00 and 98.23,while 1st support hits today at 97.46 and below there at 97.14.