While the Yen has forged a consolidation this week and that has tempered the bearish technical picture, we leave the path of least resistance pointing downward in the wake of ECB QE, generally positive US data flows and the promise of additional PBOC easing in the event it is needed. However, fresh sellers might want to wait for a bounce to down trend channel resistance up at 82.84 as RSI readings earlier this week reached the most oversold condition since December 8th 2014.
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. The daily closing price reversal down puts the market on the defensive. It is a slightly negative indicator that the close was under the swing pivot. The next downside objective is 82.01. The 9-day RSI under 30 indicates the market is approaching oversold levels. The next area of resistance is around 82.71 and 83.02, while 1st support hits today at 82.21 and below there at 82.01.