Like the rest of the non-Dollar currencies, the Yen remains entrenched in a downward motion on the charts. Adding into the fundamental justification for the slide is sluggish Japanese August import and export data. Wealso have to think that evidence of Chinese style QE to banks adds to the argument that the Yen is poised toreturn to pre-crisis exchange rate levels that are closer to 90.00.
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 close below the 9-daymoving average is an indication the short-term trend remains negative. There could be some early pressure todaygiven the market’s negative setup with the close below the 2nd swing support. The next downside target is now at91.52. More downside action may be limited by the RSI under 20 putting the market in extremely oversoldterritory. The next area of resistance is around 92.92 and 93.73, while 1st support hits today at 91.82 and belowthere at 91.52.