Japanese Yen: USD/JPY (JPY=X) currently in the middle of a consolidation

Japanese Yen: USD/JPY (JPY=X) currently in the middle of a consolidation

Japanese Yen: USD/JPY (JPY=X) currently in the middle of a consolidation

The US dollar rallied significantly during the trading session on Tuesday, breaking above the top of the shooting star for the Monday session. By doing so, we cleared the ¥108 level as well, which of course is a round figure that should attract a lot of attention.

However, we are currently in the middle of a consolidation area, which extends to the ¥108.75 level. Ultimately, we also have the 50 day EMA slicing through that level so I do think that there is a significant amount of resistance above that will keep this market in this range.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 109.29.

The projected lower bound is: 107.07.

The projected closing price is: 108.18.

Candlesticks

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 24 white candles and 24 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 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 62.7167. This is not an overbought or oversold reading. The last signal was a buy 4 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 50.69. 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 19 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 -4. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.350 at 108.210. Volume was 6% below average (neutral) and Bollinger Bands were 34% narrower than normal.

Open High Low Close Volume___
107.830 108.280 107.810 108.210 83,018

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

Moving Averages: 10-period     50-period     200-period
Close: 108.00 108.49 110.60
Volatility: 7 7 7
Volume: 80,719 88,829 97,377

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 2.2% below its 200-period moving average and is in an upward 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 bullish on JPY= and have had this outlook for the last 11 periods.

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