Japanese Yen: USD/JPY (JPY=X) pullbacks will continue to offer plenty of value

Japanese Yen: USD/JPY (JPY=X) pullbacks will continue to offer plenty of value

Japanese Yen: USD/JPY (JPY=X) pullbacks will continue to offer plenty of value

The US dollar has rallied slightly against the Japanese yen on Monday, as we continue to see a lot of US dollar strength in general. That being said, the market has exploded to the upside and we are a bit of her stretched at the moment. Nonetheless, I do think that pullbacks will continue to offer plenty of value that you can take advantage of, as this market has been so bullish in general. Ultimately, the market will continue to see the ¥110 level as an area of importance as it took so long to break above. Furthermore, I think the market extends support down to at least the ¥109.60 level, and therefore buyers can get involved on that dip.

Keep in mind that this pair is heavily influenced by risk appetite in general, so because of this you will need to pay attention to how stock markets are going overall, and as they arise typically this pair will too. Furthermore, if this market breaks out and above the shooting star from the previous session, then the market is likely to go looking towards the ¥111 level which is a gap. If we can break above the gap, then the market is likely to go towards the 100% Fibonacci retracement level above at the ¥112.35 level. Looking at this chart, it needs see the pullback or “kill time” by going sideways before exploding higher. I have no interest in shorting this pair regardless.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 109.12.

The projected upper bound is: 110.03.

The projected lower bound is: 108.38.

The projected closing price is: 109.20.

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 27 white candles and 23 black candles for a net of 4 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 26.2499. This is not an overbought or oversold reading. The last signal was a buy 0 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 46.97. 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 121 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 -98. 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.060 at 109.190. Volume was 9% below average (neutral) and Bollinger Bands were 37% wider than normal.

Open     High      Low     Close     Volume___
109.140 109.260 108.960 109.190 74,380
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 109.61 109.20 108.45
Volatility: 4 5 7
Volume: 77,122 76,420 86,598

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 0.7% above 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 volume flowing into and out of JPY= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on JPY= and have had this outlook for the last 0 periods.

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