Dip in Japanese Yen: USD/JPY (JPY=X) uptrend provides bulls with an opening
As with equities, USD/JPY’s bounce has stalled over the past couple of sessions, but the uptrend is still in place.
The pullback from Friday highs has been met with buying so far this morning, with the price finding support around ¥109.35. If a higher low is created here, then the price moves back towards ¥110.00. A bigger retracement targets the ¥108.80 area and rising trendline support from the 10 January low.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 110.82.
The projected upper bound is: 110.72.
The projected lower bound is: 107.78.
The projected closing price is: 109.25.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 83.0445. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 13 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 44.99. 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 buy 12 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 101.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed down -0.320 at 109.340. Volume was 13% below average (neutral) and Bollinger Bands were 18% wider than normal.
Open High Low Close Volume___
109.650 109.690 109.130 109.340 95,556
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 108.90 111.37 111.21
Volatility: 6 8 7
Volume: 101,991 107,828 105,095
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.
FOREX JPY= is currently 1.7% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of JPY= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on JPY= and have had this outlook for the last 32 periods.