Japanese Yen: USD/JPY (JPY=X) market looks more bullish in the short term

Japanese Yen: USD/JPY (JPY=X) market looks more bullish in the short term

Japanese Yen: USD/JPY (JPY=X) market looks more bullish in the short term

The US dollar has rallied again during the trading session on Tuesday, reaching towards the ¥109 level which also features the 200 day EMA.

The US dollar has rallied significantly during the trading session on Tuesday but is also testing the crucial 200 day EMA. That is an area that of course will attract a lot of attention, and quite frankly more than likely will jump into the path of buyers. There is a large amount of resistance between there and the ¥109.50 level, which is coincidentally the 61.8% Fibonacci retracement level. In other words, the market has a lot of noise in this area that will continue to cause issues, so it should not be a major surprise that we would struggle in this overall vicinity.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 108.08.

The projected upper bound is: 110.25.

The projected lower bound is: 108.29.

The projected closing price is: 109.27.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 54.8461. This is not an overbought or oversold reading. The last signal was a sell 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 62.30. 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 60 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 132.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 1 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.640 at 109.200. Volume was 3% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open     High      Low     Close     Volume___
108.570 109.230 108.540 109.200 86,969
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 108.65 107.80 109.02
Volatility: 6 6 7
Volume: 82,214 90,755 90,801

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 0.2% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into JPY= (mildly bullish). Our trend forecasting oscillators are currently bullish on JPY= and have had this outlook for the last 17 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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