A minor recovery bounce is being seen in the Yen because of ideas that money might have to be pulled back home in the face of domestic economic turmoil. In addition to disappointing domestic growth readings and fresh doubt on the BOJ’s ultra-aggressive easing program overnight, some players might be pushing money back into the Yen because of ideas that the Russian situation might cause some type of global hiccup. We don’t see a sustained recovery in the Yen, just a temporary bounce.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. The close below the 9-day moving average is a negative short-term indicator for trend. With the close over the 1st swing resistance number, the market is in a moderately positive position. The next downside target is 82.81. The next area of resistance is around 83.39 and 83.46, while 1st support hits today at 83.07 and below there at 82.81.