Until the Dollar finishes its slide into the FOMC statement, the Yen is likely to maintain upward traction on its charts. The primary issue serving to lift the Yen is fear of an international economic crisis that begins in Russia and extends into emerging markets. In fact, instead of seeing the benefits from the ongoing slide in oil prices, the Yen trade sees the slide in oil as a reason to repatriate back into the Yen because of a financial event ahead. We doubt the March Yen will be able to reach and old gap up at 88.93-89.06 but that could be possible if epic volatility unfolds in the week ahead.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action. The cross over and close above the 18-day moving average is an indication the intermediate-term trend has turned positive. Market positioning is positive with the close over the 1st swing resistance. The nearterm upside objective is at 85.87. The next area of resistance is around 85.51 and 85.87, while 1st support hits today at 84.43 and below there at 83.71.