Japanese Yen: USD/JPY (JPY=X) ¥107 level above should continue to be resistance

Japanese Yen: USD/JPY (JPY=X) ¥107 level above should continue to be resistance

Japanese Yen: USD/JPY (JPY=X) ¥107 level above should continue to be resistance

The US dollar rolled over a bit during the trading session on Tuesday, breaking below the bottom of the trading session on Monday. This of course is a very negative sign, and it should send this market much lower. At this point, the ¥107 level above should continue to be resistance, so I think the market will continue to find sellers near that area. At this point, the ¥105 level underneath would be your target, as it is massive support. All things being equal this is a pair that is wrist sensitive and the risk sensitivity is very high at this point as US/China trade relations continue to fall apart.

Eventually, I believe that the market breaks down below the ¥105 level, and then reached towards the ¥102.50 level. Beyond that, the market is very likely to reach down towards the ¥100 level. Given enough time, the market looks very soft and I think that although the US dollar is favored against most currencies, the Japanese yen will of course be a bit of an outlier as it is an even more worse save currency than most others.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 107.96.

The projected upper bound is: 107.59.

The projected lower bound is: 104.82.

The projected closing price is: 106.21.

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 23 black candles for a net of 2 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 65.6176. This is not an overbought or oversold reading. The last signal was a buy 9 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 43.50. 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 6 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 18. This is not a topping or bottoming area. The last signal was a buy 6 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 buy 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.030 at 106.250. Volume was 100% below average (consolidating) and Bollinger Bands were 77% wider than normal.

Open     High      Low     Close     Volume___
106.210 106.260 106.210 106.250 292
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 106.12 107.55 109.97
Volatility: 11 8 7
Volume: 89,956 87,457 94,569

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 3.4% 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 12 periods.

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