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

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

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

The US dollar initially tried to rally during the trading session on Wednesday but pulled back to reach towards the psychologically and structurally important ¥108 level.

This is an area that has been supportive and resistive in the past, so it should be no surprise at all that we are looking likely to bounce from here. That being said though, you can’t simply expect it, you need to see the market actually doing.

Beyond that, we are essentially in the middle of a consolidation area, so I don’t know that the market is going to make any significant move shortly.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 109.23.

The projected lower bound is: 107.02.

The projected closing price is: 108.13.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 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 89.6343. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 50.01. 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 21 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 5. This is not a topping or bottoming area. The last signal was a buy 3 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 buy 1 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.010 at 108.160. Volume was 92% below average (consolidating) and Bollinger Bands were 36% narrower than normal.

Open     High      Low     Close     Volume___
108.170 108.190 108.110 108.160 7,276

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

Moving Averages: 10-period     50-period     200-period
Close: 107.93 108.43 110.56
Volatility: 6 6 7
Volume: 73,223 87,050 96,594

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 13 periods.

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