The safe haven repatriation appears to have run its course especially given the reversal on the charts and the sharp deflation of open interest in the Yen over the last several trading sessions. Critical support is seen at 84.07 but a risk-on vibe in equities over the coming 48 hours should facilitate an eventual return to 82.50 in the March Yen. Down trend channel resistance is seen at 84.65.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The near-term upside objective is at 86.48. The next area of resistance is around 85.20 and 86.48, while 1st support hits today at 83.42 and below there at 82.91.