A significant range up move overnight hints at year end short covering in a currency that has forged an extremely well defined down trend for the better part of the last 5 months. Seeing the Japanese approve corporate tax cuts might be seen as a fresh stimulus for the Japanese economy and that might also be seen as another budget busting move like the delay in the sales tax. Down trend channel resistance in the March Yen is seen all the way up at 84.86 but that trend line resistance falls down to 84.66 on Wednesday.
Technical Outlook: A negative indicator was given with the downside crossover of the 9 and 18 bar moving average. Momentum studies are declining, but have fallen to oversold levels. The close below the 9-day moving average is a negative short-term indicator for trend. The market is in a bearish position with the close below the 2nd swing support number. The next downside target is 82.61. The next area of resistance is around 83.12 and 83.38, while 1st support hits today at 82.74 and below there at 82.61.