Japanese Yen: USD/JPY (JPY=X) resistance near the ¥112 level

Japanese Yen: USD/JPY (JPY=X) resistance near the ¥112 level

Japanese Yen: USD/JPY (JPY=X) resistance near the ¥112 level

The US dollar has rallied again during the trading session on Tuesday, slamming into the ¥112 level. This is a crucial level on the chart, and as a result if we can break above here on a daily close, perhaps clearing it by 25 pips or so, that would be an extraordinarily bullish sign. Pullbacks at this point should continue to see plenty of support at the ¥111.50 level. With that being the case, I do think that there is more of an upward proclivity at this juncture, but we need to let the charts tell us what to do as this is very crucial for risk appetite in general.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 110.74.

The projected upper bound is: 113.03.

The projected lower bound is: 110.56.

The projected closing price is: 111.80.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 28 white candles and 20 black candles for a net of 8 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 82.1642. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 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 64.83. 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 43 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 111.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 36 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.100 at 111.790. Volume was 67% below average (consolidating) and Bollinger Bands were 14% narrower than normal.

Open High Low Close Volume___
111.870 111.910 111.710 111.790 33,550

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

Moving Averages: 10-period 50-period 200-period
Close: 111.27 109.87 111.37
Volatility: 5 7 7
Volume: 88,744 94,385 104,607

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 0.4% 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 moderate flows of volume into JPY= (mildly bullish). Our trend forecasting oscillators are currently bullish on JPY= and have had this outlook for the last 27 periods.

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