The Yen has remained under pressure and in the process it has applied further technical damage on its charts. Surprisingly the Nikkei was the only major equity market managing gains overnight and some mightsuggest that the ongoing slide in the Yen is indeed a sign that the Yen is headed back to pre-sub-prime crisislevels down around the 90.00 level. While it doesn’t feel like it, the world is headed back toward normalcy and thatshould put the Yen back into the 80.00 to 100.00 range seen in the 10 years prior to the sub-prime crisis.Remember the carry trade and repatriation fueled the 80.00 to 130 run up in the Yen and now the market isunwinding that historical event.
Technical Outlook: The market made a new contract low on the break. Daily stochastics aretrending lower but have declined into oversold territory. The market’s short-term trend is negative as the closeremains below the 9-day moving average. The market tilt is slightly negative with the close under the pivot. Thenext downside objective is 93.72. With a reading under 20, the 9-day RSI indicates the market is extremelyoversold. The next area of resistance is around 94.46 and 94.67, while 1st support hits today at 93.99 and belowthere at 93.72.