The Yen showed some noted range down weakness overnight but then rejected that pulse lower. Perhapsthe Yen was lifted by a series of potentially positive Chinese news items. First of all, the looming Chinese NewYear might be set to improve sentiment toward China in the weeks ahead and it should also be noted that talk ofan aggressive build out of the Chinese electrical grid, suggests that the Chinese government is indeed movingaggressively toward igniting domestic consumption and that would be beneficial to Asia. As in the Euro, we wouldlook to establish a fresh long play in the Yen on a return to the recent lows.
Technical Outlook: Rising from oversold levels, daily momentum studies would support higherprices, especially on a close above resistance. The market’s short-term trend is positive on the close above the 9-day moving average. The market’s close below the pivot swing number is a mildly negative setup. The nextupside target is 96.24. The next area of resistance is around 95.94 and 96.24, while 1st support hits today at95.42 and below there at 95.20.