The Yen has clearly rejected a noted range down extension on the charts and some of the recovery actionis the result of a positive Japanese leading indicator reading for July. The initial washout in the Yen was probablythe result of aggressive easing dialogue from Japanese officials overnight and the capacity to build aconsolidation zone above 94.91 could eventually provide the bull camp with some confidence. In the end, a fresh6 year low in the Yen leaves the bear camp with a technical edge.
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. A negative signal for trend short-termwas given on a close under the 9-bar moving average. The market setup is somewhat negative with the closeunder the 1st swing support. The next downside target is 94.57. The market is approaching oversold levels on anRSI reading under 30. The next area of resistance is around 95.32 and 95.66, while 1st support hits today at94.78 and below there at 94.57.