The trend in the Yen remains down and until the Yen reaches back down into the 82.00 to 80.00 level we suspect that the overall bias will remain down. Down trend channel resistance in the December Yen falls down to 84.71 but that resistance line falls down to 84.51 on Thursday. Sell rallies in excess of 40 points.
Technical Outlook: The sell-off took the market to a new contract low. A crossover down in the daily stochastics is a bearish signal. Daily stochastics are trending lower but have declined into oversold territory. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The next downside objective is now at 83.27. The market is approaching oversold levels on an RSI reading under 30. The next area of resistance is around 84.24 and 84.80, while 1st support hits today at 83.48 and below there at 83.27.