With the short covering effort this week muted and the Yen trickling back toward the recent lows, it looks asif the path of least resistance in the Yen is set to remain down. We suspect the stimulus move from China adds tothe downside track in the Yen and we also see BOJ statements that their economy is on track to achieve inflationtargeting as justification for a fresh downside breakout in the Yen. However, the Yen might be indirectly lifted if theDollar slides in the wake of the FOMC statement and press conference and that might bring about a fresh longterm short entry opportunity.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory.The market’s short-term trend is negative as the close remains below the 9-day moving average. It is a mildlybullish indicator that the market closed over the pivot swing number. The next downside target is 92.96. With areading under 20, the 9-day RSI indicates the market is extremely oversold. The next area of resistance is around93.61 and 93.87, while 1st support hits today at 93.15 and below there at 92.96.