Japanese Yen: USD/JPY (JPY=X) pressing major resistance

Japanese Yen: USD/JPY (JPY=X) pressing major resistance

Japanese Yen: USD/JPY (JPY=X) pressing major resistance

The US dollar has initially pulled back during the trading session on Thursday but has turned around to break above the ¥111 level slightly. There is a massive amount of resistance above, and I think that should be something that you pay attention to. The ¥111.50 level is a massive barrier. Beyond that, it appears that the pair is likely to move lockstep with the S&P 500 still, which seems to be running into a significant amount of resistance.

At this point, it looks as if the 50 day EMA just below is offering support, just as the ¥110 level will be. Ultimately, if we break down below there we will then more than likely unwind down to the ¥108.50 level. Ultimately, we are consolidating and that should continue to be the main take away from this pair. If you are short-term trader, back-and-forth trading should continue to be attractive, but at this point it looks as if both the S&P 500 and the USD/JPY pair have run out of momentum, and it seems like we are going to continue to struggle to make any headway.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 112.69.

The projected lower bound is: 110.02.

The projected closing price is: 111.35.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 2 black candles for a net of 5 white candles. During the past 50 bars, there have been 27 white candles and 21 black candles for a net of 6 white candles.

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 64.6428. This is not an overbought or oversold reading. The last signal was a sell 10 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 63.14. 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 39 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 189.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 32 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.370 at 111.350. Volume was 19% below average (neutral) and Bollinger Bands were 32% narrower than normal.

Open High Low Close Volume___
110.980 111.430 110.640 111.350 84,827

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 110.79 109.79 111.31
Volatility: 5 8 7
Volume: 93,096 95,250 105,455

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 0.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 23 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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