The Yen is oversold and potentially poised to bounce in the event that the US Fed remains on hold. In fact,the BOJ overnight suggested that the slide in the Yen relative to the Dollar is helpful for the Japanese economy.BOJ comments about growth in recently troubled Japanese regions also hints at the recovery potential of theJapanese national economy and that could leave the Yen mired in a decline, as Japanese players look for higherreturns outside of Japan.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. Anegative signal for trend short-term was given on a close under the 9-bar moving average. With the close higherthan the pivot swing number, the market is in a slightly bullish posture. The next downside target is 93.04. Moredownside action may be limited by the RSI under 20 putting the market in extremely oversold territory. The nextarea of resistance is around 93.49 and 93.61, while 1st support hits today at 93.21 and below there at 93.04.