We continue to suggest that traders sell rallies in the Yen of 30-40 points looking for an eventual slide to 80.00. Talk of a landslide victory for Abe, expectations for even lower oil prices and anticipation of more Chinese stimulus leaves the Yen firmly entrenched in a downward pattern. Down trend channel resistance is seen at 83.19 but that falls down to 82.84 on Tuesday.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. A negative signal for trend short-term was given on a close under the 9-bar moving average. There could be some early pressure today given the market’s negative setup with the close below the 2nd swing support. The next downside target is now at 81.37. Selling may soon dry up since the RSI is under 20 indicating the market is extremely oversold. The next area of resistance is around 83.14 and 84.06, while 1st support hits today at 81.80 and below there at 81.37.