The Yen found early support from safe haven flows and from a decent Export reading in the Japanese Trade Balance data, but has since turned around and fallen into negative territory this morning. The BOJ’s likely start of new Japanese QE measures in April to fight deflation is keeping the Yen a clear second choice to the Dollar as a flight to safety destination, and leaving prices firmly inside their recent consolidation price zone. Consolidation support at 84.30 should hold, but the Yen may need to receive a fresh wave of safe haven flows in order to regain and sustain upside momentum.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower price action. The close above the 9-day moving average is a positive short-term indicator for trend. The upside daily closing price reversal gives the market a bullish tilt. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next downside objective is 83.89. The next area of resistance is around 85.41 and 85.72, while 1st support hits today at 84.49 and below there at 83.89.