The Yen is seeing some additional short covering action in the wake of news that the PBOC will be conservative with stimulus efforts ahead. The Yen might also be seeing some minor safe haven buying interest off weaker equities and weaker German and UK economic data released overnight. However, news from Japanese officials, that the decline in oil prices will provide the Japanese economy with a windfall of $58 billion, should be something that helps to extend the downward march in the Yen. Down trend channel resistance in the March Yen is seen at 84.32 today and that resistance line falls down to 84.16 on Monday. We don’t see a reason to call for an end to the down trend pattern in the Yen.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated. The intermediate trend has turned down with the cross over back below the 18-day moving average. The close below the 1st swing support could weigh on the market. The next upside target is 84.22. The next area of resistance is around 83.90 and 84.22, while 1st support hits today at 83.34 and below there at 83.09.