While we suspect that the Yen will see some pressure off the US non-farm payroll results later this morningit would appear that the Yen is benefiting from increased global economic anxiety. Increased volume on therecovery yesterday also points to some potential bullish action in the Yen, as a portion of the last 3 monthsdeclines seemed to come from money leaving Japan in search of higher yields. If the trade comes away from theUS payrolls with hope of US economic leadership toward global recovery, that could propel the Yen back towardthis week’s lows.
Technical Outlook: Daily stochastics are showing positive momentum from oversold levels,which should reinforce a move higher if near term resistance is taken out. The market’s close above the 9-daymoving average suggests the short-term trend remains positive. A positive setup occurred with the close over the1st swing resistance. The near-term upside objective is at 93.15. Daily studies suggest buying dips today. Thenext area of resistance is around 92.73 and 93.15, while 1st support hits today at 91.79 and below there at 91.26.