Japanese Yen: USD/JPY (JPY=X) bulls now eyeing a move towards reclaiming the key 110.00 psychological mark

Japanese Yen: USD/JPY (JPY=X) bulls now eyeing a move towards reclaiming the key 110.00 psychological mark

Japanese Yen: USD/JPY (JPY=X) bulls now eyeing a move towards reclaiming the key 110.00 psychological mark

The USD/JPY pair climbed to one-week tops in the last hour, with bulls now eyeing a move towards reclaiming the key 110.00 psychological mark.

The pair continued gaining positive traction for the second consecutive session on Thursday and built on the overnight goodish bounce from the 109.00 neighbourhood, or two-week lows. 

A slight improvement in the global risk sentiment was seen denting the Japanese Yen’s relative safe-haven status and turned out to be one of the key factors fueling the ongoing recovery momentum. 

Bullish traders further took cues from a solid rebound in the US Treasury bond yields, albeit a sideways consolidative US Dollar price action failed to provide any additional boost to the major.

Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term and positioning for any further up-move.

Thursday US economic docket – highlighting the release of prelim (second estimate) US Q1 GDP growth figures, will now be looked upon for fresh impetus later during the early North-American session.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 110.59.

The projected upper bound is: 110.49.

The projected lower bound is: 108.70.

The projected closing price is: 109.59.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

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 49.4664. This is not an overbought or oversold reading. The last signal was a buy 2 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 40.62. 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 13 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 -34. This is not a topping or bottoming area. The last signal was a buy 12 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed unchanged at 109.600. Volume was 98% below average (consolidating) and Bollinger Bands were 28% narrower than normal.

Open High Low Close Volume___
109.610 109.620 109.560 109.600 1,884

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

Moving Averages: 10-period 50-period 200-period
Close: 109.74 110.80 111.38
Volatility: 5 5 7
Volume: 84,998 86,963 99,949

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 1.6% below its 200-period moving average and is in an downward 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 bearish on JPY= and have had this outlook for the last 19 periods.

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