Some traders will maintain that the slide in the Yen for the past two months was the result of fresh stimulusefforts from the BOJ and therefore overnight comments from the BOJ regarding the potential for even morestimulus probably adds to the downward progression in the Yen. Another explanation for the slide in the Yen isthat conditions are coming into place, which should facilitate recovery in Japan. Clearly the decline in the Yenover the last year gives the Japanese export industry an assist but it is also possible that the Yen is also seeingan exodus of safe haven money that returned to Japan into and off the Sub-prime crisis. For now there is noreason to suspect an end to the slide in the Yen.
Technical Outlook: The market broke to a new contract low. Momentum studies are declining,but have fallen to oversold levels. The market’s short-term trend is negative as the close remains below the 9-daymoving average. The market’s close below the pivot swing number is a mildly negative setup. The next downsideobjective is 92.97. With a reading under 20, the 9-day RSI indicates the market is extremely oversold. The nextarea of resistance is around 93.59 and 93.92, while 1st support hits today at 93.12 and below there at 92.97.