Japanese Yen: USD/JPY (JPY=X) rises back up to key level

Japanese Yen: USD/JPY (JPY=X) rises back up to key level

Japanese Yen: USD/JPY (JPY=X) rises back up to key level

USD/JPY technicals are looking increasingly bullish despite key resistance placing a temporary cap on the uptrend.

The 112.20-30 level is holding just as it did back in early March, yet at the same time the pair remains in an intact 4-week uptrend and the chart’s look and feel preferences a break higher than a fall back.

Shayne Heffernan, CEO and Founder of Heffx suggests that although bulls have run up against a tough wall of resistance: “The overhead supply of the November/December lows 112.20/112.30 and the February high of 112.10 has prevented the run higher from continuing. Moves throughout this week have been very slight and lacking any conviction for the break,” the pair, nevertheless, is bullishly biased overall:

“There is still a feeling that 111.60/111.80 is a near term ‘buy zone’. Furthermore, the daily chart shows a near four weak uptrend at 111.30 now. The bulls would essentially retain control whilst the support at 110.80 is intact,” he adds.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 111.03.

The projected upper bound is: 113.00.

The projected lower bound is: 111.00.

The projected closing price is: 112.00.

Candlesticks

A black body occurred (because prices closed lower 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 28 white candles and 21 black candles for a net of 7 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 86.8589. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 59.92. 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 74 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 79. This is not a topping or bottoming area. The last signal was a sell 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 buy 12 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.090 at 111.960. Volume was 1% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
112.040 112.070 111.750 111.960 93,270

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

Moving Averages: 10-period 50-period 200-period
Close: 111.70 111.13 111.51
Volatility: 5 6 7
Volume: 82,435 91,680 103,078

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 low 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 5 periods.

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