The coiling continues in the Yen, with just enough macro economic uncertainty flowing from the USeconomic track and the flap in the Ukraine, to provide support for the Yen. The Yen did seem to come undernoted pressure in the wake of the jump in Chinese lending activity yesterday morning and while it has recoveredmost of those losses into this morning’s trade, the ultimate trend in the Yen is expected to be down, but not untilthe macro economic malaise from the US has past. Therefore we can’t rule out a recovery to resistance of 98.65this morning, but a return to the 99.23 level ahead will probably prompt us to step into some longer term bearplays in the Yen.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lowerespecially if support levels are taken out. The intermediate trend has turned down with the cross over back belowthe 18-day moving average. The daily closing price reversal down is a negative indicator for prices. The market’sclose below the 1st swing support number suggests a moderately negative setup for today. The next downsideobjective is 96.53. The next area of resistance is around 98.33 and 99.14, while 1st support hits today at 97.03and below there at 96.53.