The Yen has seemingly peaked out overnight as a recovery in oil prices, minimal losses in global equities and the promise for a start to EU QE next week is providing some profit taking from those that moved into the Yen for safe haven reasons. However, the safe haven tilt might be given a fresh lift today if US scheduled data later this morning denotes weaker than expected US conditions. Critical resistance and a potential bull/bear line in the March Yen this morning is seen up at 86.11.
Technical Outlook: The market now above the 60-day moving average suggests the longerterm trend has turned up. Studies are showing positive momentum but are now in overbought territory, so some caution is warranted. The market’s short-term trend is positive on the close above the 9-day moving average. The market setup is supportive for early gains with the close over the 1st swing resistance. The next upside objective is 87.03. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 86.70 and 87.03, while 1st support hits today at 85.44 and below there at 84.50.