We see the Yen in an entrenched down trend channel pattern but a major flare up of fears toward Russia might cushion the Yen temporarily and in turn increase the choppiness in the Yen ahead. Pushed into the market we would be a seller of 30 point Yen rallies but shorts probably have to risk those positions to at least 85.25 because of the rising uncertainty toward Russia.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The market’s short-term trend is negative as the close remains below the 9-day moving average. The swing indicator gave a moderately negative reading with the close below the 1st support number. The next downside target is now at 82.91. The next area of resistance is around 83.63 and 84.03, while 1st support hits today at 83.07 and below there at 82.91.