The September Yen went through a bumpy night of trading, but has returned back to unchanged levels this morning and continues to hold onto this week’s sizable gains. While a positive read on Chinese trade data put early pressure on the Yen, prices then received a significant boost when the Bank of Japan held off on fresh easing measures or amending their current outlook for the Japanese economy. BOJ Governor Kuroda also avoided any inflammatory post-meeting comments, which is also helping the market to consolidate just below this morning’s fresh 7-week highs. With the Yen currently holding the upper hand on the Dollar as a safe-haven destination, it will be difficult from prices to fall well below their current price levels through the rest of this week’s trading. The September Yen may fall back towards the 103.64 area if today’s US Jobless Claim can beat expectations, but it will likely take some negative data readings out of Japan to take the Yen far below these recent highs.
Technical Outlook
JPY (SEP): Momentum studies are trending higher but have entered overbought levels. A positive signal for trend short-term was given on a close over the 9-bar moving average. The market’s close above the 2nd swing resistance number is a bullish indication. The near-term upside target is at 104.99. The next area of resistance is around 104.59 and 104.99, while 1st support hits today at 103.05 and below there at 101.90.