Although the Bank of Japan struck an optimistic tone towards both the Japanese and global economies,their decision to maintain aggressive easing measures has kept the Yen firmly in a nosedive this morning. An 8-1vote that defeated a measure to have flexibility with their inflation target will keep the 2% level firmly in place andwill keep the BOJ in an accommodative stance well into the future. The November selloff is likely to shift safehavensupport across the Pacific into Dollars, providing another headwind for the Yen to overcome. TheDecember Yen may find support around the 98.94 level, and looks to have much more downside left to go beforefinding a near-term floor.
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. The market has aslightly positive tilt with the close over the swing pivot. The next downside objective is now at 99.53. The next areaof resistance is around 100.22 and 100.46, while 1st support hits today at 99.76 and below there at 99.53.