The Yen remains within striking distance of its recent highs but it has clearly lost upside momentum overthe last 24 hours. With the 98.78 level seen as a significant consolidation high zone for the better part of 4 monthsand the whole flight to quality angle seemingly waning, we have to think that upside potential in the Yen isseverely limited and the prospect of a slide back toward 97.50 is likely next week.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory,so some caution is warranted. The market’s short-term trend is positive on the close above the 9-day movingaverage. The market setup is supportive for early gains with the close over the 1st swing resistance. The neartermupside objective is at 99.21. The next area of resistance is around 98.92 and 99.21, while 1st support hitstoday at 98.15 and below there at 97.66.