The December Yen appears to have found some temporary support at the recent consolidation lows of 91.03. A downward revision in Chinese and Asian growth from the World Bank might provide some temporarysupport to the Yen, but the longer term downward pattern might return in the wake of comments from theJapanese Finance Minister, who suggested that the Yen wasn’t overly cheap because it was merely returning topre-sub-prime crisis levels. In other words, the BOJ might invite further declines in the Yen and an eventual returnto the sub-90 level might be in the cards. Traders should wait for a recovery to at least 91.63 and perhaps even91.90 to get short for a position.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullishand should support higher prices. A negative signal for trend short-term was given on a close under the 9-barmoving average. There could be some early pressure today given the market’s negative setup with the closebelow the 2nd swing support. The next upside target is 92.72. The next area of resistance is around 91.80 and92.72, while 1st support hits today at 90.50 and below there at 90.11.