The Yen continues to coil in a tight range despite ongoing strength in the Japanese stock market. The BOJ probably leaves the Yen under pressure with suggestions they will continue to apply stimulus until the Japanese economy shows signs of consistent recovery. Pushed into the Yen we favor the downside tilt with near term downside targeting in the March Yen seen down at 83.62.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The downside closing price reversal on the daily chart is somewhat negative. The market tilt is slightly negative with the close under the pivot. The next upside objective is 84.68. The next area of resistance is around 84.35 and 84.68, while 1st support hits today at 83.81 and below there at 83.59.