Surprisingly the Yen has remained out of favor despite a slight up-tick in economic uncertainty from the Euro zone. However, the Yen is clearly undermined by a weaker than expected June industrial production revision. While we doubt a big downside extension will be seen in the Yen, the path of least resistance is pointingdownward, with initial targeting seen at 97.17.
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. The market’s close below the pivot swing number is a mildly negative setup. The nextupside objective is 98.10. The next area of resistance is around 97.97 and 98.10, while 1st support hits today at97.77 and below there at 97.71.