It would appear that the flight to quality flow back toward the Yen has run its course and that significant resistance has been found in the March Yen up at 84.71. However, some traders are pointing to a head and shoulders bottoming formation on the charts, especially with volume providing some credibility to that potential bottoming formation. In other to get a long term reversal signal in the Yen probably requires a rally and close above 84.65 but that reversal signal falls down to 84.55 by this coming Friday.
Technical Outlook: The market now above the 40-day moving average suggests the longerterm trend has turned up. Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated. The cross over and close above the 18-day moving average is an indication the intermediate-term 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 85.23. The next area of resistance is around 84.93 and 85.23, while 1st support hits today at 83.91 and below there at 83.18.