From the charts it would appear that the Yen became temporarily oversold with the sharp spike down moveovernight. For the time being, the 84.00 level might be support but traders should look for a corrective bounce tore-sell the Yen with an ultimate downside targeting of 82.00. News that October Japanese exports jumped upsharply should send a signal that the falling Yen is beginning to help the Japanese economy. With the additionalbenefit of cheaper energy prices and very aggressive BOJ easing efforts, we think the ultimate targeting in theYen of 82.00 is easily justified. A modest correction in the December Yen is up to 85.84 might be a good short reentrypoint.
Technical Outlook: The market broke to a new contract low. Daily stochastics declining intooversold territory suggest the selling may be drying up soon. The close below the 9-day moving average is anegative short-term indicator for trend. The close below the 2nd swing support number puts the market on thedefensive. The next downside objective is 84.05. More downside action may be limited by the RSI under 20putting the market in extremely oversold territory. The next area of resistance is around 85.23 and 85.89, while1st support hits today at 84.32 and below there at 84.05.