Japanese Yen: USD/JPY (JPY=X) dips, investors await Fed minutes

Japanese Yen: USD/JPY (JPY=X) dips, investors await Fed minutes

Japanese Yen: USD/JPY (JPY=X) dips, investors await Fed minutes

The Japanese Yen has been in demand in recent weeks as the risk element increases due to trade disruption fears. As a result, the safe haven currencies have received some decent bids, therefore USD/JPY has traded on a bearish trend for some time.

With little data for the markets to digest, the Federal Reserve will be in focus. On Wednesday, the Fed releases the minutes of the July meeting. This will be followed on Thursday by the Jackson Hole Symposium, a gathering of the heads of the major central banks.

Investors will be keenly following these events, looking for hints regarding future monetary policy on the part of the Federal Reserve. The U.S economy continues to show strong growth but inflation and wage growth continue to lag, and Fed chair Jerome Powell will be expected to address these issues, and his speech could be a market-mover.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 111.49.

The projected lower bound is: 109.36.

The projected closing price is: 110.42.

Candlesticks

A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 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 25.0568. This is not an overbought or oversold reading. The last signal was a buy 18 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 42.66. 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 23 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 -142.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 sell 21 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.360 at 110.420. Volume was 0% above average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
110.050 110.540 109.760 110.420 101,380

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

Moving Averages: 10-period 50-period 200-period
Close: 110.74 111.01 109.85
Volatility: 5 6 8
Volume: 107,519 104,146 106,350

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 0.5% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of JPY= (mildly bearish). Our trend forecasting oscillators are currently bearish on JPY= and have had this outlook for the last 17 periods.

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