Japanese Yen: USD/JPY (JPY=X) significant support and extreme lows
The US dollar has gone back and forth against the Japanese yen during the trading session on Tuesday, as we have seen a lot of volatility in this market. After all, we are at pretty significant support and extreme lows, so I think we may be trying to stabilize and perhaps attract a lot of value hunting. The 61.8% Fibonacci retracement level underneath also offer support, so I think there’s a lot of confluence here that could send this market to the upside.
However, if we break down below the 61.8% Fibonacci retracement level, it opens up the door for complete wipeout of the move that sent this market higher. If that’s going to be the case, the market probably goes down to the ¥105 level. In the short term though, I believe that it’s very likely that we break above to the upside and try to reach towards the ¥109 level. Remember, it tends to take the same attitude as the S&P 500.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 110.21.
The projected upper bound is: 109.43.
The projected lower bound is: 107.39.
The projected closing price is: 108.41.
A white body occurred (because prices closed higher 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 25 white candles and 25 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 18.3704. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 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 33.91. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -122.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 15 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 sell 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed up 0.310 at 108.450. Volume was 1% above average (neutral) and Bollinger Bands were 23% wider than normal.
Open High Low Close Volume___
108.130 108.480 107.800 108.450 92,358
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 108.98 110.64 111.33
Volatility: 8 6 7
Volume: 98,272 88,903 100,348
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 2.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 22 periods.