Political scandal concerns in Japan have contributed to initial weakness in the Yen but a lack of fresh global economic optimism to start this morning might provide some minor support to the Yen. The bear camp will point to consistent respect of overhead resistance at the 50 day moving average of 84.25 and that level looks to remain resistance in today’s trade.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The close below the 9-day moving average is a negative short-term indicator for trend. The close below the 2nd swing support number puts the market on the defensive. The next downside target is now at 83.26. The next area of resistance is around 84.00 and 84.43, while 1st support hits today at 83.42 and below there at 83.26.