Not surprisingly, the Yen has forged a downside extension on the charts overnight and it appears to be poised to fall back to the early April spike low level down at 96.00. Favorable export and import data from Japanfor July adds to the safe haven/repatriation liquidation trend. Until the September Yen manages a close above97.00 the technical edge remains with the bear camp.
Technical Outlook: The downside crossover of the 9 and 18 bar moving average is a negativesignal. Momentum studies are declining, but have fallen to oversold levels. The close below the 9-day movingaverage is a negative short-term indicator for trend. There could be some early pressure today given the market’snegative setup with the close below the 2nd swing support. The next downside objective is now at 96.89. Somecaution in pressing the downside is warranted with the RSI under 30. The next area of resistance is around 97.37and 97.66, while 1st support hits today at 96.99 and below there at 96.89.