Home FX Japanese Yen: USD/JPY (JPY=X) a pullback should be a buying opportunity

Japanese Yen: USD/JPY (JPY=X) a pullback should be a buying opportunity

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Japanese Yen: USD/JPY (JPY=X) a pullback should be a buying opportunity

The US dollar has gone back and forth against the Japanese yen in early trading for the week, but the ¥110 level should continue to be an area that should cause a certain amount of resistance based not only upon previous selling, but also the psychological importance of the 110 level. Looking at the chart, it’s easy to see that there is a bit of confusion in considering that it is the day after Non-Farm Payroll numbers in the United States, it should not be surprising at all that the markets have nowhere to be on a Monday.

That being said, a pullback should be a buying opportunity, reaching down towards the 50 day EMA which is painted in red on the chart. On the other hand, if the market breaks above the recent highs near the ¥110.35 level, then the market is free to continue going higher. While the US dollar is highly bit against most currencies, there is also the risk appetite aspect to this pair that should not be ignored. In other words, we need some type of good news to send this pair to the upside with any type of momentum. To the downside, the uptrend line in the channel should continue to come into play and keep this market somewhat supported on dips. More than likely, you will get a buying opportunity if you are simply patient enough to wait a couple of days. Until then, this is probably a pair that should be avoided as it has no real reason to move in one direction or the other over the next 24 hours. However, there are clear support and resistance levels to pay attention to.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 110.67.

The projected lower bound is: 108.91.

The projected closing price is: 109.79.

Candlesticks

During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 78.8266. This is not an overbought or oversold reading. The last signal was a sell 0 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 55.94. 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 130 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 83. This is not a topping or bottoming area. The last signal was a buy 5 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.030 at 109.770. Volume was 87% below average (consolidating) and Bollinger Bands were 11% wider than normal.

Open     High      Low     Close     Volume___
109.770 109.780 109.730 109.770 10,146
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 109.35 109.26 108.37
Volatility: 6 5 7
Volume: 80,342 75,752 86,791

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 1.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on JPY= and have had this outlook for the last 2 periods.

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