With the BOJ providing fresh unexpected stimulus late last week, significant chart damage and a clear cutongoing dominance by the US Dollar, a return to long term value on the weekly charts bound by 88.00 to 80.00should be expected. Resistance in the December Yen becomes a recent gap bound by 88.87 to 88.93.
Technical Outlook: The market broke to a new contract low. Momentum studies are still bearishbut are now at oversold levels and will tend to support reversal action if it occurs. A negative signal for trend shorttermwas given on a close under the 9-bar moving average. The market is in a bearish position with the closebelow the 2nd swing support number. The next downside target is 86.97. More downside action may be limited bythe RSI under 20 putting the market in extremely oversold territory. The next area of resistance is around 90.38and 92.34, while 1st support hits today at 87.70 and below there at 86.97.