Japanese Yen: USD/JPY (JPY=X) correction from 113.17 is in progress
Japan may have been usurped by China as the world’s second largest economy some years ago, but it remains of critical importance to global economy.
Japan still accounts for a substantial 4.5% of global GDP at purchasing power parity as per the International Monetary Fund estimates.
Second, Japan’s financial markets play a major role in the global economy as the Japanese yen (JPY), a key reserve currency.
Japan’s government bonds (JGBs) market is also the largest global sovereign bond market ensuring that JGB yields operate as a key anchor for global interest rates.
Lastly, Japan has long been the vanguard of global monetary policy developments. The Bank of Japan (BoJ) has been battling deflation for over two decades and was the first major central bank to hit the zero bound (policy rates dropping to zero) and also the first to adopt quantitative easing (QE): the large scale purchase of government securities.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 112.41.
The projected lower bound is: 110.17.
The projected closing price is: 111.29.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 58.1018. This is not an overbought or oversold reading. The last signal was a buy 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 49.62. 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 sell 11 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 -31. This is not a topping or bottoming area. 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 sell 9 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed down -0.400 at 111.250. Volume was 11% below average (neutral) and Bollinger Bands were 8% narrower than normal.
Open High Low Close Volume___
111.640 111.810 111.070 111.250 91,098
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 111.33 110.70 110.02
Volatility: 5 6 8
Volume: 104,875 105,058 106,726
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 1.1% above 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 moderate flows of volume into JPY= (mildly bullish). Our trend forecasting oscillators are currently bearish on JPY= and have had this outlook for the last 5 periods.
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