While extending this week’s rebound further above the 100.00 level, the Yen has fallen well below itsovernight highs coming into this morning’s trading. Safe-haven support may not be a longer-term source ofstrength unless there are fresh risk events that rattle global markets, but lukewarm Japanese equities continue toprovide the Yen with some lift. Short-covering in front of the Bank of Japan meeting has also supported the Yen,but it is unlikely that they will deviate from their current aggressive easing measures. The December Yen couldclimb up towards the 100.40 level if global risk sentiment starts to wane, but any chance of a full-scale recoverymay have to wait until the BOJ meeting results are fully digested by the market.
Technical Outlook
JPY (DEC): Momentum studies are declining, but have fallen to oversold levels. Anegative signal for trend short-term was given on a close under the 9-bar moving average. With the close higherthan the pivot swing number, the market is in a slightly bullish posture. The next downside objective is now at99.38. The next area of resistance is around 100.32 and 100.57, while 1st support hits today at 99.73 and belowthere at 99.38.