With the September Yen reaching down to a long term consolidation low zone on the charts around the96.00 level we have to think that the pace of declines in the Yen will now begin to slow. However, from a longerterm perspective, the Yen might eventually have to return to levels closer to 90, which is the general level for thecurrency before the sub-prime crisis. Ultimately we can’t rule out a decline to long term monthly support of 95.98and 95.70.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may bedrying up soon. The close below the 9-day moving average is a negative short-term indicator for trend. The closebelow the 2nd swing support number puts the market on the defensive. The next downside target is 95.69. With areading under 20, the 9-day RSI indicates the market is extremely oversold. The next area of resistance is around96.82 and 97.45, while 1st support hits today at 95.95 and below there at 95.69.