Reduced inflation pressure from China, reduced fears toward US growth in the wake of supportive earningsand the looming FOMC meeting minutes have combined to knock the Yen back away from its recent highs. Witha modest recovery in global equities, hints of more easing from China and the US Fed expected to leave thestatus quo in place looks to pressure the Yen back toward the middle of the last months sideways consolidationpattern. Middle of the consolidation zone in the September Yen is seen down at 98.15.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lowerprice action. The market now above the 18-day moving average suggests the intermediate-term trend has turnedup. Market positioning is positive with the close over the 1st swing resistance. The next downside objective is nowat 98.06. The next area of resistance is around 98.69 and 98.83, while 1st support hits today at 98.31 and belowthere at 98.06.