The Yen looks a little vulnerable on the charts this morning as a pattern of lower highs since the end ofJanuary is only partially countervailed by a quasi double bottom low around 97.55 to 97.44. Some traders thinkthat the recent declines in the Yen have been the result of soft US data and prospects of a pause in US taperingintentions and therefore the Yen bears probably need something dovish from the Fed testimony today. Seeing theFed hint at a pause could reduce emerging market fears, reduce fears of US over tightening and provide a globalrisk on vibe and that could sink the Yen to 96.72.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lowerespecially if support levels are taken out. The close below the 9-day moving average is a negative short-termindicator for trend. The upside closing price reversal on the daily chart is somewhat bullish. It is a slightly negativeindicator that the close was under the swing pivot. The next downside target is now at 97.18. The next area ofresistance is around 98.15 and 98.41, while 1st support hits today at 97.53 and below there at 97.18.