After last week’s slide the Yen has probably become short term undervalued. In addition to fresh Chinese slowing fears in the wake of slack Chinese trade data over the weekend, the Yen is also poised to reap some fresh safe haven buying interest following a recovery back above some longer term moving average levels. Near term support in the March Yen is seen down at 84.28 and a return to overhead resistance up at 85.60 is possible in the coming week.
Technical Outlook: The close below the 60-day moving average is an indication the longer-term trend has turned down. Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The close under the 18-day moving average indicates the intermediate-term trend could be turning down. The market is in a bearish position with the close below the 2nd swing support number. The next downside target is now at 82.88. The next area of resistance is around 84.80 and 85.83, while 1st support hits today at 83.33 and below there at 82.8