Like the Euro, the Yen continues to coil tightly in a consolidation that has effectively held in place for 4 months! Talk of fiscal stimulus from China, residual strength in equities and the promise of rate cuts from Indonesia leaves the bear camp with a slight edge in the Yen. Near term downside consolidation support is seen at 83.76 and then again down at 83.45.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action. The close above the 9-day moving average is a positive short-term indicator for trend. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next upside objective is 84.75. The next area of resistance is around 84.52 and 84.75, while 1st support hits today at 83.76 and below there at 83.22.