The Yen is showing signs of returning to the long held down-trend channel but talk of a possible currency war, residual deflationary fears and the Greek election is keeping a minor safe haven bid in the Yen. A pattern of lower highs on the charts this week leaves the bear camp with an edge but consolidation support just under the market at 84.30 looks to be very important. With Japanese data showing a further expansion in January manufacturing activity overnight that could add to the near term pressure in the Yen as safe haven repatriation interest is tempered.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower price action. The market’s short-term trend is negative as the close remains below the 9-day moving average. The market’s close below the pivot swing number is a mildly negative setup. The next downside target is now at 83.54. The next area of resistance is around 84.83 and 85.59, while 1st support hits today at 83.81 and below there at 83.54.