Dissapointing GDP Data Causes Japanese Yen (¥) To Dip

Dissapointing GDP Data Causes Japanese Yen (¥) To Dip

The Japanese yen slid after some disappointing GDP data.

The yen was down by about 0.3% around 110.22 per US dollar around 8 a.m. ET after climbing as high as 109.44 in early action.

It retraced some of its losses, trading down by 0.2% at 110.02 per dollar at 8:52 a.m. ET.

The final reading showed that Japan’s GDP rose by 0.3% in the first quarter, below the preliminary reading of 0.5%.

Economists were expecting 0.6% growth, according to Bloomberg data.

  • The US dollar index is up 0.2% at 96.98 ahead former FBI Director James Comey’s testimony before the Senate Intelligence Committee. In his prepared remarks, which were released Wednesday, Comey said he told President Donald Trump that he was not under investigation and that Trump asked him for his loyalty. “There is much attention drawn to today’s hearing, and it will be televised live. It may make for good theater, but it is unlikely to be the kind of thing that moves the capital markets,” argued Marc Chandler, global head of currency strategy at Brown Brothers Harriman.
  • The British pound is down 0.3% at 1.2925 against the dollar as the UK heads to the polls. The final polls showed Theresa May’s Conservative Party as holding a lead of 4 to 13 percentage points over Jeremy Corbyn’s Labour Party. Exit polls will be published at 5 p.m. ET, and the winner will be clear by 11 p.m. ET.
  • The euro is down by 0.3% at 1.1227 against the dollar after the European Central Bank kept policy on hold in June and effectively ruled out further rate cuts. Moreover, the euro area grew at a 0.6% clip in the first quarter, ahead of the advanced reading of 0.5%.
  • The Russian ruble is up by 0.2% at 56.9680 per dollar, while Brent crude oil, the international benchmark, is down by 0.7% at $47.71 per barrel.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 111.64.

The projected upper bound is: 112.11.

The projected lower bound is: 108.51.

The projected closing price is: 110.31.

Candlesticks

A white body occurred (because prices closed higher 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 25 white candles and 25 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 40.5757. This is not an overbought or oversold reading. The last signal was a buy 1 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 43.81. 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 21 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 -59. This is not a topping or bottoming area. The last signal was a buy 0 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 17 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.360 at 110.330. Volume was 2% above average (neutral) and Bollinger Bands were 9% narrower than normal.

Open       High        Low         Close       Volume
109.990  110.800  109.730  110.330   117,491

Technical Outlook
Short Term:               Neutral
Intermediate Term: Bearish
Long Term:                Bearish

Moving Averages: 10-period  50-period  200-period
Close:                       110.45       111.07         110.47
Volatility:                9                 10               12
Volume:                   114,361     113,885     122,150

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 0.1% 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 7 periods.

“Investing in Thailand? Contact Us.”

 

The following two tabs change content below.
S. Jack Heffernan Ph.D. 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.

You must be logged in to post comments :  
CONNECT WITH