The Yen is benefiting from increased uncertainty toward the US economy and perhaps the Yen is catchingsome lift from the latest sharp slide in the Chinese currency. On the other hand, very impressive JapaneseJanuary construction orders and housing starts might give the Yen some lift from classic fundamental and growthexpectations. Up trend channel support in the March Yen is seen at 97.85 and then again down at 97.50.
Technical Outlook: A bullish signal was given with an upside crossover of the daily stochastics.Momentum studies are trending higher from mid-range, which should support a move higher if resistance levelsare penetrated. The market now above the 18-day moving average suggests the intermediate-term trend hasturned up. A positive setup occurred with the close over the 1st swing resistance. The next upside objective is98.64. The next area of resistance is around 98.29 and 98.64, while 1st support hits today at 97.61 and belowthere at 97.27.