Japanese Yen: USD/JPY (JPY=X) market will continue to move along with risk appetite

Japanese Yen: USD/JPY (JPY=X) market will continue to move along with risk appetite

Japanese Yen: USD/JPY (JPY=X) market will continue to move along with risk appetite

The US dollar continues to be rather noisy against the Japanese yen, as we are stuck between two major moving averages. Underneath, we have the red 50 day EMA, with the black 200 day EMA above. As we are dancing around in this general vicinity, it makes sense that we continue to see a lot of choppy and noisy action.

This is because both shorter and longer term traders are trying to figure out where this market goes next. Ultimately, this will be driven on headline news more than anything else, so be aware that a sudden shift in attitude could come into play. Because of this position size should be relatively small, and certainly paid very close attention to. Stop losses will be crucial, and therefore is likely that extreme caution will be needed.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 109.52.

The projected lower bound is: 106.63.

The projected closing price is: 108.07.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 82.9132. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 58.29. 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 34 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 41. This is not a topping or bottoming area. The last signal was a sell 7 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 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.150 at 108.070. Volume was 2% below average (neutral) and Bollinger Bands were 3% narrower than normal.

Open     High      Low     Close     Volume___
107.900 108.170 107.730 108.070 89,582
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 107.83 107.08 109.16
Volatility: 6 9 7
Volume: 90,626 93,605 91,513

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 1.0% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 16 periods.

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