Apparently a significant jump in Japanese Machinery orders for the month of August has been offset by aslight downtick in Japanese Consumer Sentiment overnight. It would appear that the Yen is set to remainentrenched in a downward track and that might be the result of the Yen needing to return to pre-sub-prime crisisexchanged rates. Could the Yen be headed back to 90.00 as the world returns to normal?
Technical Outlook: The market made a new contract low on the break. The daily stochasticshave crossed over down which is a bearish indication. Momentum studies are still bearish but are now at oversoldlevels and will tend to support reversal action if it occurs. The market’s close below the 9-day moving average isan indication the short-term trend remains negative. The market setup is somewhat negative with the close underthe 1st swing support. The next downside objective is now at 93.57. The 9-day RSI under 20 suggests the marketis extremely oversold. The next area of resistance is around 94.83 and 95.52, while 1st support hits today at93.85 and below there at 93.57.