Despite news of a 15 year high in the Nikkei-225 overnight the Yen is largely unmoved. News that the Japanese trade deficit fell sharply due to lower oil costs should be supportive of the Japanese economy which is also expected to be widely benefiting from favorable exchange rates. Pushed into the market we have to leave the edge with the bear camp as the BOJ has indicated they intend to leave aggressive stimulus in place until the Japanese economy shows definitive forward progress.
Technical Outlook: The cross over and close above the 40-day moving average is an indication the longer-term trend has turned positive. Positive momentum studies in the neutral zone will tend to reinforce higher price action. The market’s short-term trend is positive on the close above the 9-day moving average. The close over the pivot swing is a somewhat positive setup. The near-term upside target is at 84.79. The next area of resistance is around 84.58 and 84.79, while 1st support hits today at 83.97 and below there at 83.56.