The Yen was unable to climb above the prior session’s high overnight and it spent most of the earlyTuesday trade in lower ground. Slack Chinese economic views and fears of the upcoming tax would seem to leave the fundamental track in the Yen pointing downward. With Japanese stocks overnight falling in the face of aslight bounce in the Shanghai composite, it is clear that the bias toward Japan has remained negative. Pushedinto the market we would be a seller of the March Yen today, looking for a near term return to the lows last weekof 94.86.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullishand should support higher prices. A positive signal for trend short-term was given on a close over the 9-barmoving average. The upside daily closing price reversal gives the market a bullish tilt. Market positioning ispositive with the close over the 1st swing resistance. The next upside target is 96.88. Short-term indicatorssuggest buying dips today. The next area of resistance is around 96.50 and 96.88, while 1st support hits today at95.52 and below there at 94.93.