The Yen, also in a tight range so far, does have a slight downward bias. The Bank of Japan (BOJ) meets on Thursday to decide monetary policy. No one is really expecting the BOJ to change anything, but the risk is enough to scare market players into non-action. Economic news out of Japan has been lackluster lately and the BOJ is known for surprises, they could pull something out of their hat of tricks to jab the markets. Trading for the remaining part of today’s session should continue with that slight downward bias as the BOJ risk out weights any buying pressure. The only potential for a Yen rally today would be a very bad US trade report, something less than -45 billion.
Technical Outlook
JPY (SEP): The close under the 60-day moving average indicates the longer-term trend could be turning down. Momentum studies are declining, but have fallen to oversold levels. The market’s shortterm trend is negative as the close remains below the 9-day moving average. The market is in a bearish position with the close below the 2nd swing support number. The next downside objective is now at 99.06. The next area of resistance is around 101.22 and 102.31, while 1st support hits today at 99.60 and below there at 99.06.