In spite of a noticeable increase in global risk aversion this morning, the Yen continues to find little benefitas prices drove further into new low ground before making a moderate recovery this morning. A surprisingly largerevision to Japanese Industrial Production provided little support as well, as the prospect for fresh BOJ easingmeasures next year is keeping the Yen on the defensive heading into the weekend. A weak US PPI reading couldextend today’s bounce but at this point, near-term Yen strength should be viewed as a selling opportunity. TheMarch Yen is likely to retest the 96.28 overnight low with decent US data later this morning, and looks to havemuch further downside left to go before this longer-term downtrend runs out of steam.
Technical Outlook: The daily stochastics have crossed over down which is a bearish indication.Daily stochastics declining into oversold territory suggest the selling may be drying up soon. A negative signal fortrend short-term was given on a close under the 9-bar moving average. The market’s close below the 1st swingsupport number suggests a moderately negative setup for today. The next downside objective is 96.11. The nextarea of resistance is around 97.26 and 97.90, while 1st support hits today at 96.36 and below there at 96.11.