The Yen has been able to respect the significant spike down low overnight. Clearly the Yen wassignificantly short term oversold and deserves some technical recovery action. One might also argue that globaleconomic conditions are a little more unsettling this morning and therefore a little safe haven buying interest mightbe expected to lift the Yen temporarily. Our pick for a fresh short side entry point is up at a retracement of theOctober/November washout at 90.46.
Technical Outlook: The sell-off took the market to a new contract low. Daily stochastics aretrending lower but have declined into oversold territory. The market’s close below the 9-day moving average is anindication the short-term trend remains negative. The gap down on the day session chart is bearish with moreselling pressure possible today. The market’s close below the pivot swing number is a mildly negative setup. Thenext downside target is now at 86.73. The 9-day RSI under 20 suggests the market is extremely oversold. Thenext area of resistance is around 88.44 and 89.30, while 1st support hits today at 87.16 and below there at 86.73.