Seeing the Yen rise in the face of generally positive Japanese machinery orders suggests confidence toward the Japanese economy is still suspect and it also suggests that broad based global slowing fears havecontinued to prompt repatriation back into the Yen. Seeing the Yen rise to the highest level since September 17thhas probably resulted in a measure of longer term technical short covering action. Up-trend channel support in theDecember Yen is seen today at 92.36 and there might be little in the way of resistance seen until the 93.18 level.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce amove higher if resistance levels are taken out. The market’s short-term trend is positive on the close above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative. It is a mildlybullish indicator that the market closed over the pivot swing number. The near-term upside target is at 93.31. Thenext area of resistance is around 92.93 and 93.31, while 1st support hits today at 92.09 and below there at 91.62.