The Yen has fallen back this morning in the wake of a return torisk-on sentiment in global markets. Reports yesterday that Japan saw record tax revenue inflows really speaks to a long term recovery and that should leave the downtrend mentality in place. However, it could take a couple days of gains in global equities and stabilization in oil prices to see the March yen return to the late December consolidation lows down at 82.93.
Technical Outlook: The daily stochastics gave a bullish indicator with a crossover up. Daily momentum studies are on the rise from low levels and should accelerate a move higher on a push through the 1st swing resistance. The cross over and close above the 18-day moving average is an indication the intermediateterm trend has turned positive. There could be more upside follow through since the market closed above the 2nd swing resistance. The near-term upside objective is at 85.38. The next area of resistance is around 84.96 and 85.38, while 1st support hits today at 83.92 and below there at 83.30.