A slight revival of risk-off fear has prompted some safe haven flow back toward the yen. Seeing the BOJ cut its inflation forecast overnight and seeing the Chinese central bank hold steady with policy could leave the Yen with an upward track in the coming trading sessions. Up-trend channel support in the March Yen is seen today at 84.28 and that support rises to 84.40 on Thursday.
Technical Outlook: A bearish signal was triggered on a crossover down in the daily stochastics. Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The close below the 9-day moving average is a negative short-term indicator for trend. The market setup is somewhat negative with the close under the 1st swing support. The next downside objective is now at 83.13. The next area of resistance is around 84.90 and 85.94, while 1st support hits today at 83.50 and below there at 83.13.