Japanese Yen: USD/JPY (JPY=X) forming a hammer

Japanese Yen: USD/JPY (JPY=X) forming a hammer

Japanese Yen: USD/JPY (JPY=X) forming a hammer

The US dollar initially fell against the Japanese yen during trading on Wednesday but found the ¥112 level to be supportive enough to turn things around. Towards the end of the day, we are forming a hammer, and the FOMC Meeting Minutes seem to only confirm what we already know about the Federal Reserve, and what they are getting ready to do.

With higher interest rates in the United States, it makes sense that we will continue to see this pair rally as money is attracted to the bond market. We have also found plenty of support at the 61.8% Fibonacci retracement level, so of course it makes sense that technical traders are also interested in this area. At this point, I think we are more than likely going to try to break out above, perhaps reaching towards the ¥114.50 level again, although I expect it to take several days.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 113.38.

The projected lower bound is: 111.02.

The projected closing price is: 112.20.


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 27 white candles and 22 black candles for a net of 5 white 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 58.3333. This is not an overbought or oversold reading. The last signal was a buy 2 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 46.52. 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 10 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 -62. This is not a topping or bottoming area. The last signal was a buy 1 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 7 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.460 at 112.180. Volume was 18% above average (neutral) and Bollinger Bands were 23% wider than normal.

Open High Low Close Volume___
112.630 112.720 111.950 112.180 123,901

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

Moving Averages: 10-period 50-period 200-period
Close: 112.53 111.92 109.77
Volatility: 6 7 8
Volume: 117,151 106,049 108,503

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 2.2% 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 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 3 periods.

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