With a fresh new low for the move overnight the Yen violated a some what critical chart point of 96.00 but the trade seems to have rejected that initial downside probe. We understand last week’s downside track in thelead up to ECB easing talk, but we see enough geopolitical anxiety to caution those looking to press the shortside of the Yen. We think the Yen has solid technical and fundamental support at 96.00 and it might be unwise toattempt to pursue the Yen on the short side for a return to the December 2013/January 2014 consolidation lows inthe 95.00 to 95.50 zone.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory.The close below the 9-day moving average is a negative short-term indicator for trend. The daily closing pricereversal down puts the market on the defensive. The market tilt is slightly negative with the close under the pivot.The next downside objective is 95.65. With a reading under 20, the 9-day RSI indicates the market is extremelyoversold. The next area of resistance is around 96.59 and 96.93, while 1st support hits today at 95.95 and belowthere at 95.65.