The Yen has forged a consolidation zone around both sides of the 92.00 level but this week’s economic news from Japan appears to have stalled the down trend pattern. However, relative strength in the Nikkei to otherequity markets offers hope that future conditions will justify an eventual return to 90.00 in the Yen. As long as theDecember Yen remains below 93.43 we will assume the trend remains down.
Technical Outlook: Rising from oversold levels, daily momentum studies would support higherprices, especially on a close above resistance. The market’s short-term trend is negative as the close remainsbelow the 9-day moving average. The daily closing price reversal up on the daily chart is somewhat positive. Theclose over the pivot swing is a somewhat positive setup. The next upside target is 92.66. The market isapproaching oversold levels on an RSI reading under 30. The next area of resistance is around 92.40 and 92.66,while 1st support hits today at 91.69 and below there at 91.23.