Japanese Yen (¥) ⇨ US Dollar ($) (JPYUSD) Japanese Yen Climbs as Global Markets are In Risk-Off Mode

Japanese Yen (¥) ⇨ US Dollar ($) (JPYUSD) Japanese Yen Climbs as Global Markets are In Risk-Off Mode
Japanese Yen (¥) ⇨ US Dollar ($) (JPYUSD)

The Japanese yen is climbing.

The currency was up by 0.7% at 112.37 per dollar as of 7:56 a.m. ET.

Global markets are in risk-off mode, with the yen, gold, and US Treasury’s rallying.

Betting on yen appreciation is popular during periods of heightened uncertainty.

Treasury’s, considered the safest place investors can park their money, and gold, which is a traditional “end of the world” trade, are also often bought up aggressively by investors in times of stress.

Highlights

  • The US Dollar index is down by 0.2% at 97.96.
  • The British pound is up by 0.4% at 1.2963 against the dollar after data from the Office for National Statistics showed that Britain’s unemployment fell to a 42-year low of 4.6%. Wage growth, however, is falling.
  • The euro is up by 0.3% at 1.1112 against the dollar.
  • The Russian ruble is down by 0.2% at 56.6776 per dollar, while Brent crude oil, the international benchmark, is up by 0.7% at $52.01 a barrel.
Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 112.32.

The projected lower bound is: 108.62.

The projected closing price is: 110.47.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 6.5909. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 40.30. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 5 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -165.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.260 at 110.540. Volume was 26% below average (neutral) and Bollinger Bands were 26% wider than normal.

Open       High       Low         Close       Volume
110.810   111.410   110.210   110.540   89,687

Technical Outlook
Short Term:               Oversold
Intermediate Term: Bullish
Long Term:                Bullish

Moving Averages:  10-period      50-period      200-period
Close:                        112.96            111.53             109.71
Volatility:                 14                    11                     12
Volume:                   103,140          112,107           117,215

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX JPY= is currently 0.8% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of JPY= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on JPY= and have had this outlook for the last 14 periods.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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