The Yen has seemingly found some support or value around the 95.13 level and that firming support mightbe partially the result of supportive comments from the BOJ. With the Bank of Japan suggesting that the negativeimpact of the tax increase is abating and suggesting that the Japanese economy is into a positive cycle that hasmade sellers of the Yen fearful of getting short the Yen at what appears to be a potentially significantconsolidation support zone on the charts. On the other hand, the bear camp could suggest that a monthly chart ofthe Yen shows the potential of an eventual decline down to 90.00 which in turn would effectively remove the safehaven premium built into the Yen off the sub-prime crisis repatriation event.
Technical Outlook: The market made a new contract low on the break. Daily stochasticsdeclining into oversold territory suggest the selling may be drying up soon. The market’s short-term trend isnegative as the close remains below the 9-day moving average. The daily closing price reversal up is a positiveindicator that could support higher prices. The close over the pivot swing is a somewhat positive setup. The nextdownside target is now at 94.82. The 9-day RSI under 30 indicates the market is approaching oversold levels.The next area of resistance is around 95.71 and 95.85, while 1st support hits today at 95.19 and below there at94.82.