Rallies in the Yen should be sold as the trend remains down and the Yen must continue to fall until the exchange rate helps drag the Japanese economy out of its deflationary stall. While some players might fear a lack of support from Abe policies in the coming election, the trade realizes the path in the Yen is part of the ultimate recovery package for the Japanese economy. Look to sell bounces back up to 85.06 looking for a decline to 82.00.
Technical Outlook: Daily momentum studies are on the rise from low levels and should accelerate a move higher on a push through the 1st swing resistance. The close below the 9-day moving average is a negative short-term indicator for trend. It is a mildly bullish indicator that the market closed over the pivot swing number. The next upside objective is 85.62. The 9-day RSI under 20 suggests the market is extremely oversold. The next area of resistance is around 85.30 and 85.62, while 1st support hits today at 84.58 and below there at 84.17.