The Yen rally has probably seen its corrective bounce and shorts can consider re-entering the short side of the Yen trade again. However, for the Yen to fully resume its trek toward our eventual targeting of 80.00 probably requires less deflationary Armageddon fears, more positive global equity market action and ideas that the world can avoid a return to recession.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action. The intermediate trend could be turning up with the close back above the 18-day moving average. The close over the pivot swing is a somewhat positive setup. The near-term upside target is at 86.14. The next area of resistance is around 85.65 and 86.14, while 1st support hits today at 84.09 and below there at 83.01.