A pattern of lower highs remains in place and the path of least resistance in the Yen looks to remain down.However, the rate of decline might be limited by the lack of forward acceleration in the US economy and bylingering concerns of slowing in China. On the other hand, the BOJ continues to float supportive dialogue on theimproving condition of the Japanese economy and that might facilitate a near term slide below 97.50 in the JuneYen contract.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend tosupport reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. The market’s close below the 1st swing support number suggests a moderately negativesetup for today. The near-term upside target is at 98.45. The next area of resistance is around 98.10 and 98.45,while 1st support hits today at 97.57 and below there at 97.38.