Japanese Yen: USD/JPY (JPY=X) showing little movement
The Japanese yen is showing little movement in the Monday session. In North American trade, the pair is trading at 111.14, up 0.04% on the day. In economic news, Japanese Capital Spending jumped 12.8% in the second quarter, crushing the estimate of 6.6%. This marked the strongest reading since 2007. Final Manufacturing PMI edged up to 52.5 points, matching the forecast. On Tuesday, the U.S releases ISM Manufacturing PMI.
There was some good news from Japan’s inflation front on Thursday, as Tokyo Core CPI strengthened for a third straight month, with a gain of 0.9%. This indicator is considered the primary gauge of consumer inflation, and the strong reading propelled the yen higher on Thursday. Still, inflation remains well below the Bank of Japan’s target of just below 2%, despite the Bank’s ultra-accommodative monetary policy.
Investors are keeping a nervous eye on the tariff spat between China and the U.S.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 112.18.
The projected lower bound is: 109.96.
The projected closing price is: 111.07.
During the past 10 bars, there have been 5 white candles and 3 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 33.3331. This is not an overbought or oversold reading. The last signal was a sell 3 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 50.12. 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 33 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 31. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed down -0.020 at 111.050. Volume was 100% below average (consolidating) and Bollinger Bands were 44% narrower than normal.
Open High Low Close Volume___
111.050 111.060 111.030 111.050 66
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 111.11 111.18 109.81
Volatility: 6 6 8
Volume: 97,551 103,490 105,702
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.
FOREX JPY= is currently 1.1% 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 27 periods.