Tankan survey readings show almost no improvement in the Japanese economic track. The one positive isthe survey’s prediction of a jump in capital expenditures. However, as in the rest of the Non-Dollar currencies, itcould take a series or trend of weaker US data points to alter the entrenched down trend in the Yen. Sell rallies to91.30 looking for an ultimate test of 90.00.
Technical Outlook: The sell-off took the market to a new contract low. Momentum studies arestill bearish but are now at oversold levels and will tend to support reversal action if it occurs. A negative signal fortrend short-term was given on a close under the 9-bar moving average. It is a slightly negative indicator that theclose was under the swing pivot. The next downside objective is 90.74. The 9-day RSI under 20 suggests themarket is extremely oversold. The next area of resistance is around 91.51 and 91.85, while 1st support hits todayat 90.96 and below there at 90.74.