The down trend in the Yen continues as calls for a snap election and a delay in a sales tax hike has lefttraders confident that the Japanese leadership is doing everything in its power to kick start the strugglingJapanese economy. Traders should look for rallies back up to 86.13 to re-sell the December yen looking for aneventual downside target of 82.00.
Technical Outlook: The market was pushed 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. It is a slightly negative indicator that the close was under theswing pivot. The next downside target is now at 84.77. With a reading under 20, the 9-day RSI indicates themarket is extremely oversold. The next area of resistance is around 86.47 and 87.14, while 1st support hits todayat 85.29 and below there at 84.77.