A weak pattern of higher lows and a building base of consolidation lows on the charts provide the Yen with a cushion, at the same time that escalating uncertainty toward Russia might overtake uncertainty toward the Greek situation for a moderate overall increase in safe haven interest for the Yen. Critical support in the March Yen is seen at 84.31 and then again down at 84.20. With a hard down in equities and harsh dialogue from Putin the Yen could attempt a rally back toward initial resistance up at 85.87.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a move lower if support levels are taken out. The market’s short-term trend is negative as the close remains below the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative. The swing indicator gave a moderately negative reading with the close below the 1st support number. The next downside target is 83.75. The next area of resistance is around 84.88 and 85.55, while 1st support hits today at 83.98 and below there at 83.75.