Cushioning the Yen is news overnight of a rise in Japanese exports which in turn managed to reach the highest level since February. However, slack economic views toward the Chinese economy keep a lid on Japanese export hopes going forward. It should be noted that Japan is starting to see the benefits of falling oilprices as gasoline prices fell to the lowest level since February this week and that could be seen as a stimulus ofsorts for the Japanese economy. In our opinion, to see downside action in the Yen resume and for the Yen to fallback to pre-sub-prime crisis levels down at 90.00 probably requires forward motion in the global economy andright now that isn’t a forgone conclusion.
Technical Outlook: Momentum studies trending lower at mid-range could accelerate a pricebreak if support levels are broken. The close above the 9-day moving average is a positive short-term indicator fortrend. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The nextdownside target is now at 93.04. The next area of resistance is around 93.91 and 94.37, while 1st support hitstoday at 93.25 and below there at 93.04.