The Yen hasn’t been able to check a slow and gradual slide in the face of deteriorating US economic viewsand or in the face of some rather surprising threats from Putin regarding sanctions retaliation. However, theUkraine situation doesn’t appear to be escalating and Japanese coincident indicators jumped to the highest levelin 6 years. In our opinion, seeing economic readings return to pre-sub prime levels is usually not something toignore. However, given US economic uncertainty, Ukraine uncertainty and lackluster economic news flow fromChina, the downward momentum in the Yen might be restrained. Down trend channel line support and a target inthe March Yen is seen down at 96.36.
Technical Outlook: The close below the 40-day moving average is an indication the longer-termtrend has turned down. Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. The market’s short-term trend is negative as the close remains below the 9-day moving average. Thedefensive setup, with the close under the 2nd swing support, could cause some early weakness. The nextdownside objective is 96.37. The next area of resistance is around 97.43 and 97.98, while 1st support hits todayat 96.63 and below there at 96.37.