News that Japan auto sales declined by 11.4% in April relative to year ago levels provided some flight toquality lift to the Yen especially with that decline the first monthly decline since September of 2013. Weakness inJapanese department store sales is partially countervailed by positive action in the Nikkei overnight and that couldlimit the June Yen to a downtrend channel resistance line up at 97.98. That downtrend channel resistance linefalls to 97.92 on Friday.
Technical Outlook: The major trend could be turning up with the close back above the 60-daymoving average. Declining momentum studies in the neutral zone will tend to reinforce lower price action. Thecross over and close above the 18-day moving average is an indication the intermediate-term trend has turnedpositive. The market’s close above the 2nd swing resistance number is a bullish indication. The next downsidetarget is now at 97.19. The next area of resistance is around 98.15 and 98.40, while 1st support hits today at97.55 and below there at 97.19.