Japanese Yen: USD/JPY (JPY=X) next support at 108.70

Japanese Yen: USD/JPY (JPY=X) next support at 108.70

Japanese Yen: USD/JPY (JPY=X) next support at 108.70

USD could dip below but is unlikely to challenge the next support at 108.70. The sudden lurch lower in USD came a surprise as it cracked the strong 109.30 support and came close to taking out the next support at 109.00 (overnight low of 109.01).

Despite the bounce from the low, it is too soon to expect a recovery. However, the ‘hesitant’ downward momentum suggests while USD could dip below 109.00, it is unlikely to challenge the next support at 108.70. Resistance is at 109.50 but the stronger level is closer to 109.85.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 110.71.

The projected upper bound is: 110.53.

The projected lower bound is: 108.60.

The projected closing price is: 109.57.

Candlesticks

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 24 white candles and 26 black candles for a net of 2 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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 34.6697. 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 31.94. 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 1 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 -82. This is not a topping or bottoming area. The last signal was a buy 0 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 14 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.020 at 109.610. Volume was 99% below average (consolidating) and Bollinger Bands were 55% wider than normal.

Open High Low Close Volume___
109.600 109.650 109.590 109.610 1,265

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 110.19 111.13 111.44
Volatility: 5 6 7
Volume: 78,633 86,886 100,957

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 1.6% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of JPY= (mildly bearish). Our trend forecasting oscillators are currently bearish on JPY= and have had this outlook for the last 7 periods.

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