The path of least resistance in the Yen remains down. While news of softer than expected Japaneseexports and a March trade deficit might eventually spark fresh easing action from the BOJ, negative sentimenttoward Japan is moderated by news that Construction demand lifted Japanese crude steel output to a fresh 6year high. In short, things in Japan are slowly improving, despite the Japanese sales tax hike and softer thanexpected export flow to China. Resistance moves down to 97.70 and support is lowered to 97.13.
Technical Outlook: The major trend has turned down with the cross over back below the 60-daymoving average. The daily stochastics have crossed over down which is a bearish indication. Stochastics turningbearish at overbought levels will tend to support lower prices if support levels are broken. A negative signal fortrend short-term was given on a close under the 9-bar moving average. It is a slightly negative indicator that theclose was lower than the pivot swing number. The next downside target is now at 97.20. The next area ofresistance is around 97.94 and 98.37, while 1st support hits today at 97.36 and below there at 97.20.