Japanese Yen: USD/JPY (JPY=X) focus is on inflation data
USD/JPY has posted slight gains on Monday. In the North American session, the pair is trading at 111.10, up 0.38% on the day. It’s a light day for fundamentals, with no key events out of the United States. In Japan, the focus is on inflation data. SPPI remained steady rising 1.1% for a second straight month. On Tuesday, the Bank of Japan’s preferred inflation gauge, BoJ Core CPI, is expected to improve to 0.6%. The U.S. will post CB Consumer Confidence. As well, Federal Reserve Chair Jerome Powell testifies before the Senate Banking Committee.
The Japanese yen is under pressure, as stronger risk appetite has made the safe-haven yen less attractive. Investor optimism continues to rise as there are further signs that trade tensions between the U.S. and China are easing. The parties concluded a fourth round of talks last week. President Trump had said that he would raise tariffs on Chinese goods from 10% to 25% on March 1, but hinted last week that the deadline was flexible. On Sunday, Trump tweeted that he was waiving the deadline, since the parties had made “significant progress”. Trump added that he was open to meeting with Chinese President Xi, if there was further progress. The trade war between the U.S. and China has disrupted international trade and dampened global growth, so a breakthrough in the trade talks would raise risk appetite, which could mean further losses for the yen.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 112.40.
The projected lower bound is: 109.62.
The projected closing price is: 111.01.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 25 white candles and 23 black candles for a net of 2 white candles.
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 70.1918. This is not an overbought or oversold reading. The last signal was a sell 8 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 62.38. 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 37 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 117.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 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 30 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed down -0.020 at 111.040. Volume was 98% below average (consolidating) and Bollinger Bands were 13% narrower than normal.
Open High Low Close Volume___
111.050 111.080 111.000 111.040 1,719
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 110.75 109.83 111.30
Volatility: 5 8 7
Volume: 85,707 94,930 105,449
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 0.2% below its 200-period moving average and is in an upward 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 bullish on JPY= and have had this outlook for the last 21 periods.
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