With safe-haven support continuing to erode and the Bank of Japan’s easing measures front-and-centerwith the market, the Yen remains on the defensive at the start of the trading week. Comments by BOJ GovernorKuroda that they will take “sufficient measures” if further risks materialize has added further weight to the Yen thismorning, which has found little if any lasting benefit from positive Japanese data readings over the past week.Both the 97.00 level and the 96.75 low for 2013 may be tough levels to break through over the near-term, but afirm 2% inflation target points towards much lower prices level going into 2014. An abysmal performance duringNovember leaves the Yen vulnerable to short-covering off of any weakness in US data, but any recovery backtowards last week’s highs should be viewed as opportunity to approach the short side of the market. TheDecember Yen may find near-term support around the 97.12 level, and at this point will need a major revival ofsafe-haven support to put the brakes on this current downdraft.
Technical Outlook
JPY (DEC): Momentum studies are declining, but have fallen to oversold levels. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. It is a slightlynegative indicator that the close was lower than the pivot swing number. The next downside target is 97.05. Themarket is approaching oversold levels on an RSI reading under 30. The next area of resistance is around 97.93and 98.34, while 1st support hits today at 97.29 and below there at 97.05.