Japanese Yen: USD/JPY (JPY=X) focus will be on for a close below 110.50

Japanese Yen: USD/JPY (JPY=X) focus will be on for a close below 110.50

Japanese Yen: USD/JPY (JPY=X) focus will be on for a close below 110.50

Much like the USD, the Japanese Yen has been among the notable beneficiary from the negative sentiment stemming from the sell in EM currencies.

USDJPY broke through key support at 110.50, however, focus will be on for a close below 110.50 to confirm a material move lower. Large option expiries of 1.3bln from 110.00-05 keeps the pair underpinned.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 111.79.

The projected lower bound is: 109.68.

The projected closing price is: 110.74.

Candlesticks

A white body occurred (because prices closed higher 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.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 44.6524. This is not an overbought or oversold reading. The last signal was a buy 13 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 42.77. 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 18 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 -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 18 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 16 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.010 at 110.720. Volume was 94% below average (consolidating) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
110.680 110.770 110.600 110.720 6,109

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

Moving Averages: 10-period 50-period 200-period
Close: 111.18 110.95 109.93
Volatility: 3 6 8
Volume: 86,138 100,184 105,973

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 0.7% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 12 periods.

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