The Yen managed a range up extension overnight and also managed an upside breakout on its charts. TheYen probably saw weak Chinese manufacturing figures as supportive and perhaps the Yen is also deriving somelift from ideas that the US growth pace is anemic relative to expectations for growth in the US. While we can’t ruleout a slight flight to quality rally in the June Yen up to the consolidation highs of 98.73 we doubt that the Yen ispoised for a significant and sustained rally.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lowerespecially if support levels are taken out. The market’s close above the 9-day moving average suggests the shorttermtrend remains positive. The daily closing price reversal up is a positive indicator that could support higherprices. It is a mildly bullish indicator that the market closed over the pivot swing number. The next downside targetis 96.55. The next area of resistance is around 98.36 and 98.68, while 1st support hits today at 97.30 and belowthere at 96.55.