With a key reversal off of new low for move yesterday and further upside action again overnight, the bearcamp in the Yen is kept off balance into the last trading session of the week. With the March Yen climbing into achart gap above the 94.60 level, it is possible that the path of least resistance is pointing upward. The Yen mayget more safe-haven support off lukewarm Chinese data, choppy global equity market action and ideas that USFed dialogue later today will foster talk of more US tapering ahead. The Yen is probably seeing less action todaybecause of a Japanese bank holiday, but the recent gains on the charts, become more significant technically if arise above a two month down trend channel resistance line of 96.29 is seen. That potentially critical down trendchannel resistance line comes in at 96.13 on Monday.
Technical Outlook: The market broke to a new contract low. The daily stochastics have crossedover up which is a bullish indication. Daily momentum studies are on the rise from low levels and shouldaccelerate a move higher on a push through the 1st swing resistance. The market’s close below the 9-day movingaverage is an indication the short-term trend remains negative. A positive signal was given by the outside day up.A positive setup occurred with the close over the 1st swing resistance. The next upside objective is 96.22. Thenext area of resistance is around 95.94 and 96.22, while 1st support hits today at 95.12 and below there at 94.58.