Down-trend channel resistance is seen up at 83.94 and that resistance line falls down to 83.75 on Wednesday. Those short the Yen have to be careful of a financial debacle in equities which in turn sparks repatriation back into the Yen and a short covering rally similar to the bounce seen in early October.
Technical Outlook: The market was pushed to a new contract low. The daily stochastics gave a bullish indicator with a crossover up. Daily stochastics are showing positive momentum from oversold levels, which should reinforce a move higher if near term resistance is taken out. The market’s short-term trend is negative as the close remains below the 9-day moving average. The daily closing price reversal up is a positive indicator that could support higher prices. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The near-term upside objective is at 83.92. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance is around 83.45 and 83.92, while 1st support hits today at 82.35 and below there at 81.72.