Tight coiling action in the Yen suggests a pivot point ahead but expectations of a drag on the Japaneseeconomy from sales tax hike probably means that the yen will be taking most of its direction from US economicreadings later today. Initial support is seen down at 97.60, with up trend channel line support seen down at 96.85today, but that support level rises to 96.91 by this Friday.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a movelower if support levels are taken out. The close below the 9-day moving average is a negative short-term indicatorfor trend. The downside closing price reversal on the daily chart is somewhat negative. With the close higher thanthe pivot swing number, the market is in a slightly bullish posture. The next downside target is now at 97.43. Thenext area of resistance is around 98.03 and 98.20, while 1st support hits today at 97.65 and below there at 97.43.