As expected the Yen continues to claw out minor gains off residual safe haven sentiment. While generallyslack Chinese data overnight leaves macroeconomic uncertainty high in the Pacific Rim, the focus of the currencymarkets might shift toward Eastern Europe and the Crimea as the weekend referendum approaches. The bullcamp might be emboldened by the rally on rising volume this week, but thick overhead consolidation resistancefrom the February trade looks to limit the Yen.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and willtend to support reversal action if it occurs. The market’s close below the 9-day moving average is an indicationthe short-term trend remains negative. The close over the pivot swing is a somewhat positive setup. The nextdownside objective is 96.79. The next area of resistance is around 97.62 and 97.83, while 1st support hits todayat 97.10 and below there at 96.79.