Japanese Yen: USD/JPY (JPY=X) Back to 110.00 as Recovery Sets in
Similar to the British Pound above, USD/JPY started the year with fireworks that have seemingly taken a back seat over the past four weeks. Prices in USD/JPY have recovered from the earlier-year ‘flash crash,’ and prices have run back-up to a key zone of resistance that runs from 109.67 up to 110.00. I had looked into this zone last month, and since then this area has held multiple topside advances despite continued persistence from buyers.
At this stage, USD/JPY has produced a price action setup similar to an ascending triangle, in which horizontal resistance is meshed up with a series of higher-lows. This opens the door to bullish biases, as the same motivation that’s helped to bring-in higher-lows may soon allow for a break above that horizontal level or zone of resistance.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 111.34.
The projected lower bound is: 108.45.
The projected closing price is: 109.89.
A white body occurred (because prices closed higher 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.
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 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 84.7493. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 53.79. 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 22 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 132.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 15 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed up 0.090 at 109.970. Volume was 17% below average (neutral) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
109.880 110.030 109.770 109.970 90,353
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 109.47 110.63 111.25
Volatility: 5 8 7
Volume: 97,535 103,394 105,146
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 1.2% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 6 periods.