The bottom has fallen out of the consolidation zone and has suffered significant damage. However, on adecline to the December 2013 lows of 95.15 the Yen will reach a significant support zone on the charts.Apparently Japan is seeing a loss in confidence in “Abenomics” and that probably justifies the failure on thecharts overnight. On the other hand, seeing a significant downward adjustment in the Yen (which is now down12% in 10 months) could eventually rescue the Japanese manufacturing export sector.
Technical Outlook: The daily stochastics have crossed over down which is a bearish indication.Momentum studies are declining, but have fallen to oversold levels. The close below the 9-day moving average isa negative short-term indicator for trend. The close below the 1st swing support could weigh on the market. Thenext downside target is 95.77. Some caution in pressing the downside is warranted with the RSI under 30. Thenext area of resistance is around 96.34 and 96.62, while 1st support hits today at 95.92 and below there at 95.77.