The corrective bounce in the Yen is merely taking the form of a sideways consolidation move and therefore trend traders have to hope for a bounce back to 85.22 to 85.35 to re-enter the short side of the Yen. In fact, vigorous support for aggressive easing and stimulus from a BOJ member overnight should signal an eventual continuation of the downside in the Yen in the coming weeks and months.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullish and should support higher prices. The market’s short-term trend is negative as the close remains below the 9-day moving average. The upside closing price reversal on the daily chart is somewhat bullish. The close over the pivot swing is a somewhat positive setup. The near-term upside target is at 85.38. With a reading under 20, the 9-day RSI indicates the market is extremely oversold. The next area of resistance is around 85.11 and 85.38, while 1st
support hits today at 84.45 and below there at 84.05.