The Yen was at least temporarily oversold into the lows overnight and a measure of back and fill is possibledirectly ahead. We doubt the yen will be able to mount a return to the first retracement off the October/Novemberslide up at 89.84 but a bounce to 88.19 might be possible. Other places to consider re-entering the short side ofthe December Yen are 88.39 and or with a sell stop below the market at 87.09.
Technical Outlook: The market broke to a new contract low. Daily stochastics declining intooversold territory suggest the selling may be drying up soon. A negative signal for trend short-term was given on aclose under the 9-bar moving average. There could be some early pressure today given the market’s negativesetup with the close below the 2nd swing support. The next downside target is now at 86.33. The 9-day RSI under20 suggests the market is extremely oversold. The next area of resistance is around 87.72 and 88.50, while 1stsupport hits today at 86.64 and below there at 86.33.