Japanese Yen: USD/JPY (JPY=X) Stock correction or change of course?
The Japanese yen returned to its role as a safe-haven currency. The sell-off in stocks sent money flowing into the yen. The correction seen late in the week helped the pair recover as well.
US data did not help the greenback: Core CPI got stuck at 2.2% and did not recover. The University of Michigan’s consumer confidence measure also fell below 100 points. US President Donald Trump complained about the Fed’s policy.
115.55 was a high point in the first half of 2017 and is an upside target. 114.60 was the high point in early October and serves as resistance.
114 is a round number and was a stepping stone on the way down. 113.50 supported USD/JPY when it traded on high ground.
113.15 was a swing high back in July. 112.55 served as support in September and resistance in October, making it a significant level.
111.80 was the low point after the fall in mid-October. 111.50 capped the pair in August.
110.60 was a swing low in late July and then again in late August. 109.70 was a swing low in late August and provides extra support below the round 110 level.
Close by, 109.35 was a cushion in mid-July. 108.70 was a cushion early in the summer and 108.10 a swing low in late May.
Lower, we find 107.50 capped the pair in early April and is a strong line.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 113.31.
The projected lower bound is: 111.04.
The projected closing price is: 112.18.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 17.2008. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 44.87. 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 7 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 -114.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed down -0.030 at 112.160. Volume was 99% below average (consolidating) and Bollinger Bands were 18% wider than normal.
Open High Low Close Volume___
112.090 112.250 112.090 112.160 1,302
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 113.07 111.86 109.77
Volatility: 7 6 8
Volume: 103,382 102,121 107,788
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 2.2% 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 0 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.