Surprisingly the Yen continues to decline on its charts as if more long term fear and safe haven premium isbeing extracted. With sharply lower energy prices, repetitive BOJ easing and a growing currency export edge,there is some justification for the Yen to continue toward the levels seen prior to the sub-prime crisis. Nextdownside targeting in the Yen is seen at 86.69 on the monthly charts. In fact, the BOJ overnight promised evenmore stimulus ahead if price targeting is not achieved.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and willtend to support reversal action if it occurs. The close below the 9-day moving average is a negative short-termindicator for trend. The market’s close below the pivot swing number is a mildly negative setup. The nextdownside target is now at 87.54. The 9-day RSI under 20 suggests the market is extremely oversold. The nextarea of resistance is around 88.26 and 88.59, while 1st support hits today at 87.74 and below there at 87.54.