Japanese economic data overnight was non descript with Japanese leading indicators showing minimalgains. However, with somewhat discouraging Chinese export data overnight and another decline in the ShanghaiComposite, the fundamental case in the Yen remains in favor of the bear camp. However, decent US scheduleddata yesterday morning provided the Yen with a low to high bounce of roughly 25 ticks, which eventuallyextended to a rally of 40 ticks over a 3 hour period yesterday. Therefore one might expect a rally in the Yen in thewake of the US data, with upside targeting seen up at 95.60 basis the March Yen contract.
Technical Outlook: Daily momentum studies are on the rise from low levels and shouldaccelerate a move higher on a push through the 1st swing resistance. The close above the 9-day moving averageis a positive short-term indicator for trend. The close over the pivot swing is a somewhat positive setup. The nextupside objective is 95.88. The next area of resistance is around 95.67 and 95.88, while 1st support hits today at95.24 and below there at 95.01.