Even higher levels of global uncertainty should continue to pull back money toward the Yen. Some Asian investors might see the mess in Europe as a reason to further repatriate capital and that could leave the March yen above the 85.00 level in the coming trading sessions. Eventually we will want to buy puts but until the tide of deflationary fear subsides, the path of least resistance in the Yen looks to remain up.
Technical Outlook: Rising stochastics at overbought levels warrant some caution for bulls. The close above the 9-day moving average is a positive short-term indicator for trend. The market has a slightly positive tilt with the close over the swing pivot. The near-term upside target is at 86.77. The next area of resistance is around 85.96 and 86.77, while 1st support hits today at 84.59 and below there at 84.02.