Japanese Yen: USD/JPY (JPY=X) pulls back from overnight high

Japanese Yen: USD/JPY (JPY=X) pulls back from overnight high

Japanese Yen: USD/JPY (JPY=X) pulls back from overnight high

Since yesterday’s high, the USD/JPY price has pulled back, but the uptrend from the lows of last Thursday remains intact. Even a dip to ¥108.50 would still be a possible buying opportunity, and for now the price is holding above ¥108.70.

A fresh move higher, reinforced by the bullish crossover in the daily moving average convergence divergence (MACD) indicator, would target ¥109.20 and then higher.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 110.93.

The projected upper bound is: 110.53.

The projected lower bound is: 107.64.

The projected closing price is: 109.08.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

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.

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 84.0688. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 43.09. 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 9 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 59. This is not a topping or bottoming area. The last signal was a buy 8 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 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.100 at 109.180. Volume was 2% below average (neutral) and Bollinger Bands were 41% wider than normal.

Open High Low Close Volume___
109.080 109.390 108.670 109.180 107,864

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

Moving Averages: 10-period 50-period 200-period
Close: 108.61 111.62 111.18
Volatility: 7 8 7
Volume: 101,403 109,016 105,382

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 1.8% below its 200-period moving average and is in an downward trend. Volatility is high 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 29 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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