The Yen has forged a higher high on the charts overnight and it appears as if money is flowing to the Yen because a lack of alternative attractive currencies. One might also suggest that the Yen is seeing some safehaven buying interest from the escalation of tensions in Ukraine and from economic uncertainty in both the Eurozone and the US this week. A rise in open interest on this week’s strength in the Yen is also giving addedcredence to this week’s pattern of higher lows. Up-trend channel support in the September Yen is seen thismorning at 96.23.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. Themarket’s close below the 9-day moving average is an indication the short-term trend remains negative. Themarket has a slightly positive tilt with the close over the swing pivot. The next downside objective is now at 95.89.The 9-day RSI under 30 indicates the market is approaching oversold levels. The next area of resistance isaround 96.45 and 96.58, while 1st support hits today at 96.11 and below there at 95.89.