The steady erosion of safe-haven support both at home and abroad is keeping the Yen under pressure thismorning as prices continue to slide further below the key 100.00 level. Japanese equities have been on a tearwith the Nikkei posting a 7.6% gain this week, which has further undercut the Yen’s strength going into theweekend. With Bank of Japan easing measures unlikely to let up anytime soon, the Yen looks to be headingfurther to the downside over the near future. The December Yen may see a retest of the 99.43 September lowlater this morning and unless there is a revival of safe-haven support, looks to finish out this week squarely on thedefensive.
Technical Outlook
JPY (DEC): Momentum studies are still bearish but are now at oversold levels and willtend to support reversal action if it occurs. A negative signal for trend short-term was given on a close under the9-bar moving average. The close below the 1st swing support could weigh on the market. The next downsideobjective is 99.16. The next area of resistance is around 100.55 and 101.24, while 1st support hits today at 99.51and below there at 99.16.