The Yen has forged some fresh damage on its charts overnight and the currency looks poised to break outto the downside in the event that 91.43 in the December Yen contract fails to hold later today. Reports of the 1stdecline in Chinese steel production in 14 years, fresh upside breakout action in the Dollar overnight and talk fromeconomists that even more stimulus efforts from the BOJ are needed looks to leave the Yen headed back towardthe 90.00 level.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullishand should support higher prices. The close below the 9-day moving average is a negative short-term indicator fortrend. The market tilt is slightly negative with the close under the pivot. The near-term upside target is at 92.47.More downside action may be limited by the RSI under 20 putting the market in extremely oversold territory. Thenext area of resistance is around 92.07 and 92.47, while 1st support hits today at 91.47 and below there at 91.27.