Although it is still holding within its recent consolidation zone, a potential outside-day down may not bode well for the Yen heading into the weekend. Last night’s large number of Japanese economic data points provided mixed results and few surprises, but did not have any “blockbuster” readings that would have changed the market’s view that the BOJ could shift away from their present easing and stimulus path. A retest of the 84.06 low for the move may be ambitious heading into the weekend, but the Yen is likely to remain on the defensive through the end of this week’s trading.
Technical Outlook: Daily momentum studies are on the rise from low levels and should accelerate a move higher on a push through the 1st swing resistance. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The close over the pivot swing is a somewhat positive setup. The near-term upside objective is at 85.32. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance is around 85.12 and 85.32, while 1st support hits today at 84.76 and below there at 84.60.