A recent build-up of consolidation support and a pattern of higher lows should leave the bull camp in the Yen with a slight edge. Fears of debt default in Greece, talk of fresh Russian sanctions and fears that US growth might be retarded by premature rate hikes seems to leave the yen in a position to garner weak safe haven buying interest ahead. However, longer term players should look to upcoming rallies in the yen as an opportunity to purchase longer dated Yen put options.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a move lower if support levels are taken out. The close above the 9-day moving average is a positive short-term indicator for trend. The close over the pivot swing is a somewhat positive setup. The next downside objective is now at 84.29. The next area of resistance is around 85.47 and 85.78, while 1st support hits today at 84.73 and below there at 84.29.