May’s labor cash earnings were up 0.7% compared to the same month in 2016, official figures showed. That was well above the 0.4% gain which markets expected. The Japanese government also said that regular pay had put in its biggest annual gain since March 2000 and that overtime payments were rising.
For the 24 hours to 23:00 GMT, the USD marginally rose against the JPY and closed at 113.16.
In the Asian session, at GMT0300, the pair is trading at 113.07, with the USD trading 0.08% lower against the JPY from yesterday’s close.
The pair is expected to find support at 112.70, and a fall through could take it to the next support level of 112.34. The pair is expected to find its first resistance at 113.56, and a rise through could take it to the next resistance level of 114.06.
Looking ahead, Japan’s flash leading and coincident indices for May, scheduled to release tomorrow, will be on investors’ radar.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
Overall, the bias in prices is: Upwards.
Short term: Prices are moving.
Intermediate term: Prices are ranging.
By the way, prices are vulnerable to a correction towards 112.08.
The projected upper bound is: 115.47.
The projected lower bound is: 112.00.
The projected closing price is: 113.73.
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 24 white candles and 26 black candles for a net of 2 black candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with FOREX JPY=), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 82.0512. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 69.48. 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 41 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 125.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 16 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed up 0.490 at 113.690. Volume was 79% below average (consolidating) and Bollinger Bands were 6% wider than normal.
Open High Low Close Volume
113.180 113.830 113.070 113.690 23,211
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 112.77 111.78 111.49
Volatility: 6 10 12
Volume: 101,265 109,742 124,406
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 2.0% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into JPY= (mildly bullish). Our trend forecasting oscillators are currently bullish on JPY= and have had this outlook for the last 8 periods.
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