Global macro-economic uncertainty is fueling a risk-off vibe and a safe haven flow back into the Yen. Near term upside targeting in the Yen is seen up at 86.00 and unrelenting deflationary fears, lower oil and sliding equities could eventually lift the nearby Yen contract back to the December spike highs up at 86.63.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higher if resistance levels are taken out. The market’s short-term trend is positive on the close above the 9-day moving average. The market has a slightly positive tilt with the close over the swing pivot. The next upside target is 85.71. The next area of resistance is around 85.35 and 85.71, while 1st support hits today at 84.41 and below there at 83.82.