The Yen sees a slight corrective bounce in the wake of a Chinese interest rate cut but ultimately seeing theChinese ease and seeing the ECB promise more aggressive easing should set the stage for a downsideextension in the Yen in the weeks ahead. It is possible that the snap election in Japan provides some temporaryshort covering in the Yen but we doubt that the December Yen will be able to rise above initial resistance seen upat 85.44.
Technical Outlook: The market broke to a new contract low. The crossover up in the dailystochastics is a bullish signal. Daily momentum studies are on the rise from low levels and should accelerate amove higher on a push through the 1st swing resistance. A negative signal for trend short-term was given on aclose under the 9-bar moving average. It is a slightly negative indicator that the close was lower than the pivotswing number. The next upside objective is 85.49. Selling may soon dry up since the RSI is under 20 indicatingthe market is extremely oversold. The next area of resistance is around 85.17 and 85.49, while 1st support hitstoday at 84.29 and below there at 83.74.