The sell-off in the Yen has probably become a little overextended with the high to low slide of 277 points. However, in looking at the charts there doesn’t appear to be much in the way of support until the 92.00 level andwith the fresh US Ebola infection and general weakness in global equities, the downward bias in the Yen might betemporarily reversed. Predictions of more BOJ easing ahead, warnings of increased volcanic activity around theFukushima facility are issues that could check the slide in the Yen directly ahead, as the Yen’s pattern is to fall onimproved global conditions and to rise off repatriation in the face of rising global anxiety.
Technical Outlook: The close under the 40-day moving average indicates the longer-term trendcould be turning down. Momentum studies trending lower at mid-range should accelerate a move lower if supportlevels are taken out. The market back below the 18-day moving average suggests the intermediate-term trendcould be turning down. The defensive setup, with the close under the 2nd swing support, could cause some earlyweakness. The next downside target is now at 91.58. The next area of resistance is around 92.95 and 93.71,while 1st support hits today at 91.89 and below there at 91.58.