Japanese Yen: USD/JPY (JPY=X) May Reverse

Japanese Yen: USD/JPY (JPY=X) May Reverse

Japanese Yen: USD/JPY (JPY=X) May Reverse

USD: The US Dollar remains king as its major counterparts weaken, most notably GBP. The greenback appears to have shrugged off the initital fears pertaining to an impeachment of President Trump. That said, it would take a 2/3 majority in the Senate to be able to remove Trump from office. As such, given that the Republicans hold a majoirty with the Senate, this appears unlikely.

However, the uncertainty looks to have plagued equity markets with European equities trading with modest losses. In turn, USD/JPY may begin to attract sellers from 107.80-108.00.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 109.20.

The projected lower bound is: 106.28.

The projected closing price is: 107.74.

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 27 white candles and 23 black candles for a net of 4 white candles.

A bearish harami occurred (where the current small black body is contained within an unusually large white body). During an uptrend (which appears to be the case with FOREX JPY=) this pattern implies an end to the rally as the bulls appear to have exhausted themselves.

During a downtrend the bearish harami pattern is bullish as the bulls appear to be gaining strength as the bears weaken.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 40.6253. This is not an overbought or oversold reading. The last signal was a buy 1 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 54.68. 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 32 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 -2. This is not a topping or bottoming area. The last signal was a sell 5 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 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.030 at 107.730. Volume was 97% below average (consolidating) and Bollinger Bands were 10% wider than normal.

Open     High      Low     Close     Volume___
107.760 107.790 107.710 107.730 2,265
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 107.84 107.07 109.19
Volatility: 6 9 7
Volume: 85,187 91,570 91,300

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 1.3% 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 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 14 periods.

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