The Yen was probably supported by Japanese export data released over the weekend. With exports to Asiaincreasing by a surprising 34.4% on the year some might suggest that the Japanese economy is finally benefitingfrom the prolonged slide in its currency. Exports from Japan to Europe also rose by an impressive 23% inDecember over the prior year and that has seemingly taken the attention away from the deflationary vibe that wasseen at the end of last week. Initial support is seen at 97.10 and the bull camp might be expected to extend apattern of higher lows and higher highs ahead.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels.A positive signal for trend short-term was given on a close over the 9-bar moving average. The market setup issupportive for early gains with the close over the 1st swing resistance. The near-term upside objective is at 99.07.The market is approaching overbought levels with an RSI over 70. The next area of resistance is around 98.58and 99.07, while 1st support hits today at 97.09 and below there at 96.08.