While a rise in bank lending activity facilitated some selling in the Yen this morning, the market looks tohave fairly solid support just under the market at 98.00. However, overnight concerns of slack Japanese exportsmight be able to keep the safe haven bid alive for the Yen and in turn increase confidence in support around the98.00 level. If the June Yen does slide through support, the declines might be narrow and hard to sustain.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels.A positive signal for trend short-term was given on a close over the 9-bar moving average. The close below the1st swing support could weigh on the market. The next upside target is 98.60. The next area of resistance isaround 98.41 and 98.60, while 1st support hits today at 98.11 and below there at 98.01.