Apparently geopolitical angst and slack global economic data hasn’t fostered safe haven or repatriation buying of the Yen this week. Some might suggest that favorable Japanese machinery orders overnight tampeddown the safe haven impetus toward the Yen, as June machinery orders reportedly rose by 8.8% over the priormonth. Some players might have been discouraged because the machinery orders weren’t as strong as initialexpectations. Initial support in the September Yen today is seen down at 97.45 and the bias remains down.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce amove higher if resistance levels are taken out. The market’s close below the 9-day moving average is anindication the short-term trend remains negative. The swing indicator gave a moderately negative reading with theclose below the 1st support number. The near-term upside objective is at 97.96. The next area of resistance isaround 97.78 and 97.96, while 1st support hits today at 97.48 and below there at 97.36.