After two days of selling pressure the Yen is rebounding slightly in what seems to be nothing more than a knee-jerk reaction, as reported Japanese economic data today has been in line with expectations. Tomorrow’s Core Machinery Order report, if considerably different than expectations, could move the Yen. However, more attention will be paid to US data as the Fed’s policy meeting draws closer next week. Today’s action will most likely be directionless with a slight upward bias as profit taking from the last couple of days’ sell off takes hold.
Technical Outlook
JPY (SEP): Daily stochastics declining into oversold territory suggest the selling may be drying up soon. The close below the 9-day moving average is a negative short-term indicator for trend. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The next downside target is 98.87. The next area of resistance is around 100.16 and 100.84, while 1st support hits today at 99.18 and below there at 98.87.