The coiling pattern in the Yen has become even tighter which suggests to some that a major decision or reaction might be seen today in the wake of the US payroll result. Go with a breakout of a tight trading range defined as 85.49 and 84.78. We favor selling rallies as the world seems to be drifting toward slightly less cloudy overall conditions.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. A positive signal for trend short-term was given on a close over the 9-bar moving average. The daily closing price reversal down puts the market on the defensive. The market tilt is slightly negative with the close under the pivot. The next downside objective is 84.79. The next area of resistance is around 85.34 and 85.62, while 1st support hits today at 84.92 and below there at 84.79.