The Yen is holding its ground above key support at the 0.9700 level for now, but has shown few signs of recovering this week’s steep losses before this morning’s US data. A weak reading for the Japanese PMI hasadded to a growing list of sluggish Japanese economic data points which are putting fresh BOJ easing measuresback on the table. In order to shift flight-to-safety flows away from the Dollar and back into the Yen, the market willlikely need to see a clearly disappointing Payroll number. Near-term support is at 0.9711, but the Yen is showingsigns that it will finish out this week with a new low for the move.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and willtend to support reversal action if it occurs. A negative signal for trend short-term was given on a close under the9-bar moving average. The market tilt is slightly negative with the close under the pivot. The next downside targetis 96.98. The 9-day RSI under 30 indicates the market is approaching oversold levels. The next area of resistanceis around 97.38 and 97.51, while 1st support hits today at 97.12 and below there at 96.98.