A fresh downside breakout in the Yen suggests that events in the Ukraine are no longer fostering globalfinancial uncertainty. Suggestions from the BOJ overnight that the Japanese economy has continued towardrecovery and inflation targets, even in the face of the recent sale tax implementation, has given the bear campfresh resolve. The failure to hold above the consolidation low of 97.25 in the March Yen could be seen as a freshtechnical failure and that could press the Yen toward 96.72.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Decliningmomentum studies in the neutral zone will tend to reinforce lower price action. A negative signal for trend shorttermwas given on a close under the 9-bar moving average. The market’s close below the pivot swing number is amildly negative setup. The next downside target is 97.31. The next area of resistance is around 97.91 and 98.12,while 1st support hits today at 97.51 and below there at 97.31.