There appears to be enough residual global uncertainty to keep the Yen in a minor upward track today. However, the passing of the latest Japanese election should remove some uncertainty from the equation and if the US Dollar regains its footing, through the FOMC statement on Wednesday, that could shift the Yen back into the well-entrenched down trend pattern that has dominated the market since early August. Down trend channel resistance is seen at 85.00 and that resistance level declines to 84.75 on Tuesday.
Technical Outlook: Momentum studies are trending higher from mid-range, which should support a move higher if resistance levels are penetrated. 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 objective is at 85.20. The next area of resistance is around 84.78 and 85.20, while 1st support hits today at 83.97 and below there at 83.57.