While an upcoming vote or no vote of confidence for Abe might result in expanded volatility and short covering gains in the Yen, we think the ultimate trend in the Yen will remain down. Therefore position traders should hope for a rally back to 85.50 to get short, while traders should be a little more aggressive with fresh sales of the December Yen on a rally back to 85.20.
Technical Outlook: The market made a new contract low on the break. The stochastics indicators are rising from oversold levels, which is bullish and should support higher prices. The close below the 9-day moving average is a negative short-term indicator for trend. The upside daily closing price reversal gives the market a bullish tilt. The close over the pivot swing is a somewhat positive setup. The next upside target is 85.37. The 9-day RSI under 30 indicates the market is approaching oversold levels. The next area of resistance is around 84.97 and 85.37, while 1st support hits today at 84.06 and below there at 83.54.