Japanese Yen: USD/JPY (JPY=X) market is trying to reach towards the ¥110 level again

Japanese Yen: USD/JPY (JPY=X) market is trying to reach towards the ¥110 level again

Japanese Yen: USD/JPY (JPY=X) market is trying to reach towards the ¥110 level again

The US dollar had initially pulled back a bit during the trading session on Tuesday, only to turn around and form a hammer like candle. This shows that the market is trying to reach towards the ¥110 level again, and I believe at this point it’s likely that we will continue to see a lot of resistance above so I’m not looking for a breakout in the short term. If we were to make a fresh, new high though, then it’s likely that the market goes looking towards the ¥111 level, perhaps even the ¥112.33 level.

Ultimately, it’s not until we break down below the uptrend line of the channel that it’s going to be a scenario where buying the dips continue to work. If we do break down below the bottom of the uptrend line though, it’s likely that the pair could drop all the way down to the ¥105 level. When looking at the longer-term chart, the ¥110 level it’s essentially “fair value” as it is the midway point between the ¥105 level underneath that shows support and the ¥115 level above showing resistance.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 109.21.

The projected upper bound is: 110.78.

The projected lower bound is: 109.00.

The projected closing price is: 109.89.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 45.1220. This is not an overbought or oversold reading. The last signal was a sell 5 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 55.89. 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 135 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 48. This is not a topping or bottoming area. The last signal was a sell 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 8 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.010 at 109.870. Volume was 10% above average (neutral) and Bollinger Bands were 2% wider than normal.

Open     High      Low     Close     Volume___
109.860 109.940 109.640 109.870 88,975
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 109.84 109.38 108.37
Volatility: 3 5 7
Volume: 86,185 77,427 86,878

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 1.4% above 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 7 periods.

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