With a pattern of lower highs extending overnight, the BOJ suggesting that inflation will manage to hold above 1% despite slack Japanese growth results and the US and UK thought to be nearing rate hike territory, thesafe haven interest in the Yen is on the decline. Near term downside targeting is seen down at 98.19 and perhapseven 97.87.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce amove higher if resistance levels are taken out. The market’s short-term trend is positive on the close above the 9-day moving average. There could be some early pressure today given the market’s negative setup with the closebelow the 2nd swing support. The next upside target is 98.85. The next area of resistance is around 98.66 and98.85, while 1st support hits today at 98.37 and below there at 98.25.