The Japanese yen has edged lower in the Monday session. In North American trade, USD/JPY is trading at 112.68 up 0.12% on the day. On the release front, Japanese All Industries Activity improved 0.5%, up from 0.0% month earlier. The reading was a shade better than the estimate of 0.4%. On Tuesday, Japan releases BoJ Core CPI, the preferred indicator of the Bank of Japan.
Japanese policymakers are keeping a close eye on the strained relations between China and the U.S., as the trade war between the two economic giants shows no signs of abating. The U.S Treasury Department released its semi-annual report on foreign exchange rates, and there was some relief in the markets as the report did not name China as a currency manipulator. Still, the report said that the U.S was “deeply disappointed’ with that China refuses to disclose the extent of its foreign currency intervention. The Chinese yuan has slipped some 9 percent since April, and U.S officials are concerned that China has deliberately weakened the currency in order to counter U.S tariffs on Chinese goods, and will continue to monitor China’s currency practices.
The Bank of Japan’s radical monetary easing policy has cut into the profits of many financial institutions, but the BoJ has no plans to alter course. The bank released its semiannual financial system report, which noted that the financial sector shows no signs of overheating and that banks continue their “active lending attitudes”. The BoJ is unlikely to make any changes to policy before 2020, aside from some minor tweaks. Bank policymakers will meet on Oct. 30-31 for the next policy meeting.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 114.04.
The projected lower bound is: 111.66.
The projected closing price is: 112.85.
A white body occurred (because prices closed higher 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 29 white candles and 20 black candles for a net of 9 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 76.6272. This is not an overbought or oversold reading. The last signal was a buy 4 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 53.07. 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 12 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 -12. This is not a topping or bottoming area. The last signal was a buy 3 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 9 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed up 0.270 at 112.810. Volume was 5% below average (neutral) and Bollinger Bands were 23% wider than normal.
Open High Low Close Volume___
112.480 112.880 112.340 112.810 99,308
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 112.37 112.00 109.79
Volatility: 7 7 8
Volume: 118,642 106,032 108,642
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 2.7% 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 5 periods.
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