Renewed weakness in the Yen overnight has resulted in fresh technical damage on the charts. While the markets are relieved by the Chinese GDP results, those figures didn’t exactly project confidence toward growth in Asia going forward. Near term downside targeting in the March Yen is seen down at 84.18. SWISS: The Swiss charts would seem to point to more gradual downside erosion ahead as the reaction to the SNB policy debacle drips from the equation. Initial support and a possible critical pivot point this morning is seen down at 1.1366 and since the market initially failed to hold that level, we have to give the bear camp an edge.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to support reversal action if it occurs. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The downside closing price reversal on the daily chart is somewhat negative. It is a slightly negative indicator that the close was under the swing pivot. The near-term upside target is at 86.86. The next area of resistance is around 85.95 and 86.86, while 1st support hits today at 84.56 and below there at 84.07.