The yen this week moved back toward the middle of a 3 month old consolidation zone this week and it might be poised to garner some additional lift from reports of sagging Japanese consumer sentiment. Initial resistance is seen up at 84.54 but we doubt that the Yen is going to make a decisive run in either direction, and therefore traders with short option experience might consider selling calls on rallies toward 85.50 and selling Yen puts on declines back toward 83.00.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. A negative signal for trend short-term was given on a close under the 9-bar moving average. Market positioning is positive with the close over the 1st swing resistance. The next downside target is 82.62. The next area of resistance is around 84.74 and 85.23, while 1st support hits today at 83.44 and below there at 82.62.