Apparently the Yen trade sees little need for safe haven interest in the Yen in the face of the Dollar melt up and also in the face of decent Japanese economic data released overnight. We suspect that a fresh downside extension is in the cards in the Yen, as Dollar strength looks to continue and the Chinese are expected to offer more stimulus in an effort to support that economy. In the near term, the path of least resistance in the Yen remains down with resistance seen up at 82.71.
Technical Outlook: The sell-off took the market to a new contract low. Daily stochastics declining into oversold territory suggest the selling may be drying up soon. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The daily closing price reversal up on the daily chart is somewhat positive. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next downside target is now at 81.71. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance is around 82.99 and 83.22, while 1st support hits today at 82.23 and below there at 81.71.