The Yen remains pinned down near the recent lows in the wake of slack Chinese import data and it hasalso remained weak in the face of 2nd quarter growth readings. While the Yen looks to remain off balancebecause of residual strength in the Dollar, overt weakness in the Pound, Euro, Swiss and Canadian might betaking some of the distinct pressure off the Yen. Potentially critical support in the Yen is seen at 94.96 today andthe failure to hold that level might usher in a quick return to last week’s lows.
Technical Outlook: The market made a new contract low on the break. The crossover up in thedaily stochastics is a bullish signal. Daily momentum studies are on the rise from low levels and should acceleratea move higher on a push through the 1st swing resistance. The market’s close below the 9-day moving average isan indication the short-term trend remains negative. The daily closing price reversal up on the daily chart issomewhat positive. The close over the pivot swing is a somewhat positive setup. The near-term upside target is at96.05. Some caution in pressing the downside is warranted with the RSI under 30. The next area of resistance isaround 95.65 and 96.05, while 1st support hits today at 94.74 and below there at 94.22.