The Yen forged another lower low of the move overnight, as recent economic readings have beendiscouraging and those readings have been amplified by fears that the recent sales tax hike has added additionalheadwinds to the recovery effort in Japan. There might be little in the way of significant support in the June Yenuntil the January consolidation lows down around the 95.51 level! Some initial support might be seen at evennumbers of 96.00.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and willtend to support reversal action if it occurs. A negative signal for trend short-term was given on a close under the9-bar moving average. The market’s close below the 1st swing support number suggests a moderately negativesetup for today. The next downside target is 96.00. The market is approaching oversold levels on an RSI readingunder 30. The next area of resistance is around 96.78 and 97.21, while 1st support hits today at 96.18 and belowthere at 96.00.