Tight ranges are expected to continue in the Yen but a consistent rise in open interest in the Yen since thebeginning of the month gives the June rally some fresh credence. Up-trend channel support in the June Yen isseen today at 98.09 and that support line rises to 98.22 on Tuesday. Some players think news of a Japanesecorporate tax cut and positive inflation talk from the BOJ overnight leave the Yen with a fundamental foundation toreturn to the top of the 6 month long consolidation zone up at 99.00.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higherprice action. A positive signal for trend short-term was given on a close over the 9-bar moving average. The swingindicator gave a moderately negative reading with the close below the 1st support number. The next upside targetis 98.54. The next area of resistance is around 98.27 and 98.54, while 1st support hits today at 97.83 and belowthere at 97.65.