A pattern of lower highs in the Yen would seem to give the bear camp a technical edge this morning. The 50 day moving average in the September Yen at 98.05 might offer some measure of support today but pushedinto the market we can’t rule out a two day slide down to consolidation support of 97.54. Down trend channelresistance is seen today up at 98.31 but that resistance line falls to 98.26 on Wednesday.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce amove higher if resistance levels are taken out. A positive signal for trend short-term was given on a close over the9-bar moving average. It is a mildly bullish indicator that the market closed over the pivot swing number. Thenear-term upside objective is at 98.47. The next area of resistance is around 98.34 and 98.47, while 1st supporthits today at 98.05 and below there at 97.88.