Talk that the Japanese sales tax might be delayed and extremely bearish Yen/Dollar exchange rate projections leave the Yen in a downdraft. In fact, comments from the BOJ overnight that their policy is directed atrecovery and not at exchange rates would seem to clear the way for more significant declines in the Yen ahead.With the gap down failure on the monthly charts, there might not be significant support in the Yen until the 86.05level.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. Theclose below the 9-day moving average is a negative short-term indicator for trend. The downside closing pricereversal on the daily chart is somewhat negative. It is a slightly negative indicator that the close was under theswing pivot. The next downside target is 86.47. More downside action may be limited by the RSI under 20 puttingthe market in extremely oversold territory. The next area of resistance is around 87.49 and 88.07, while 1stsupport hits today at 86.70 and below there at 86.47.