The down trend in the Yen remains firmly entrenched and while the BOJ isn’t doing everything in its power to sink its currency, the BOJ isn’t unhappy with the potential for a slide in its exchange rate to the lowest level since 2007. The BOJ has tried everything, but lower oil prices and the best manufacturing export exchange rate since 1998 might be expected to add just enough added stimulus to climb out of the vortex of deflation. Until US manufacturers scream, the Yen should continue to fall. Sell any 20-30 point rallies in the Yen looking for a return to 80.00.
Technical Outlook: The market broke to a new contract low. Daily stochastics declining into oversold territory suggest the selling may be drying up soon. The close below the 9-day moving average is a negative short-term indicator for trend. The daily closing price reversal up is a positive indicator that could support higher prices. It is a slightly negative indicator that the close was under the swing pivot. The next downside target is now at 82.85. Selling may soon dry up since the RSI is under 20 indicating the market is extremely oversold. The next area of resistance is around 83.82 and 84.14, while 1st support hits today at 83.18 and below there at 82.85.