The Yen came away from a flurry of scheduled data flows overnight with a general view that the economy is being held back by the sales tax hike and that action would seem to signal an end to the attempt to rally thatstarted earlier this week. We are not sure that the Yen deserves to forge a fresh downside breakout off its dataflows and the condition of the rest of the currency markets but pushed into the Yen we would have to favor thedownside. We see at least a return to consolidation support of 96.00 level in the September Yen contract.
Technical Outlook: The crossover up in the daily stochastics is a bullish signal. The stochasticsindicators are rising from oversold levels, which is bullish and should support higher prices. The market’s closebelow the 9-day moving average is an indication the short-term trend remains negative. It is a mildly bullishindicator that the market closed over the pivot swing number. The near-term upside objective is at 96.76. The nextarea of resistance is around 96.60 and 96.76, while 1st support hits today at 96.25 and below there at 96.05.