Japanese Yen: USD/JPY (JPY=X) pulls back into trendline support

Japanese Yen: USD/JPY (JPY=X) pulls back into trendline support

Japanese Yen: USD/JPY (JPY=X) pulls back into trendline support

USD/JPY has dropped into trendline support overnight, with the recent channel looking to come back into play.

Looking at the stochastic oscillator, we can also see an area of trendline support coming into view too. With that in mind, there is a good chance we will see the pair start to turn higher, with a break below ¥111.65 required to break out of this uptrend.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 111.04.

The projected upper bound is: 113.59.

The projected lower bound is: 111.34.

The projected closing price is: 112.46.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black 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 87.6580. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 16 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 62.14. 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 sell 46 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 119.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 20 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.020 at 112.460. Volume was 96% below average (consolidating) and Bollinger Bands were 6% narrower than normal.

Open High Low Close Volume___
112.470 112.500 112.440 112.460 4,431

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

Moving Averages: 10-period 50-period 200-period
Close: 111.93 111.38 109.75
Volatility: 5 6 8
Volume: 81,845 100,443 104,801

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 2.5% above 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 10 periods.

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