A fresh upside breakout in the Yen would seem to indicate ongoing safe haven anxiety off the emergingmarkets situation but the Yen might also be drafting some lift from lackluster Chinese data overnight. Perhaps theYen is catching some added lift from US Fed dialogue late last week that seemed to indicate more tapering aheador perhaps the Yen is still drafting lift from comments from the Indian Finance Minister, who blamed the emergingmarkets currency crisis on the US central bank. Strong domestic Japanese auto sales figures for January mighthave added into the upward track in the Yen, but recently domestic data from Japan hasn’t played that much ofrole in determining the Yen exchange rate. Up trend channel support is seen at 98.10 and there might not besignificant resistance until the 98.83 level.
Technical Outlook: The major trend could be turning up with the close back above the 60-daymoving average. Momentum studies are trending higher but have entered overbought levels. The market’s closeabove the 9-day moving average suggests the short-term trend remains positive. The outside day up is somewhatpositive. A positive setup occurred with the close over the 1st swing resistance. The next upside objective is98.73. The next area of resistance is around 98.44 and 98.73, while 1st support hits today at 97.52 and belowthere at 96.88.