A reversal in the Dollar, slack Chinese data and a heavy flow of US data leaves the Yen in a precariousposition today. Ongoing tensions between China and Japan might have an adverse impact on the Yen, as theJapanese economy is hardly in a position to deflect uncertainty off trade sanctions and or fears of military action.However, some leaders in Japan appear to be fanning tensions instead of tempering the potential for conflict.With US numbers generally positive, Euro zone data providing a slight positive surprise and UK CBI data positiveovernight, the Yen is clearly losing the macro economic differential argument again. Resistance is significant up at96.21 and again up at 96.31.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a movelower if support levels are taken out. The close below the 9-day moving average is a negative short-term indicatorfor trend. It is a slightly negative indicator that the close was under the swing pivot. The next downside objective isnow at 95.27. The next area of resistance is around 96.01 and 96.39, while 1st support hits today at 95.45 andbelow there at 95.27.