The Yen extended the October downdraft overnight and in the process that puts the Yen down to the lowestlevel since 2008. Next downside targeting is seen down at 90.55 off the monthly chart and we can’t rule out aneventual return to 86.00. While there are many who doubt the Japanese economy can ever recover, seeing morestable Chinese activity and significantly lower energy prices will eventually mend the Japanese economy. For nowthe cure for the deflationary mired Japanese economy is an even lower Yen.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may bedrying up soon. The market’s short-term trend is negative as the close remains below the 9-day moving average.It is a slightly negative indicator that the close was under the swing pivot. The next downside objective is now at91.03. The next area of resistance is around 91.88 and 92.22, while 1st support hits today at 91.28 and belowthere at 91.03.