Japanese Yen: USD/JPY (JPY=X) supported early by a strong performance in the Asia Pacific markets

Japanese Yen: USD/JPY (JPY=X) supported early by a strong performance in the Asia Pacific markets

Japanese Yen: USD/JPY (JPY=X) supported early by a strong performance in the Asia Pacific markets

The Dollar/Yen is inching lower on Tuesday after giving back earlier gains. The Forex pair was supported early by a strong performance in the Asia Pacific markets, but turned lower along with demand for higher-yielding assets in Europe and the United States. Dollar/Yen traders are also responding to a dip in U.S. Treasury yields after a firmer performance earlier in the session. The move in yields is tightening the spread between U.S. Government bonds and Japanese Government bonds, making the Japanese Yen a slightly more attractive asset.

The early price action indicates investors are taking a cautious approach ahead of trade talks between the United States and China, set to begin on October 10 in Washington.

There is very little economic news this week which means Dollar/Yen investors have a lot of time to dwell on other areas. Of course, U.S.-China trade talks are at the forefront, but investors are also monitoring the ongoing Brexit discussions and debating the degree of easing required from the Federal Reserve following the recent string of weakening U.S. activity indicators and the slowing in the labor market.

Some of the earlier rally may have been attributed to a note from analysts at J.P. Morgan, which said they are expecting a no-deal status quo between the two economic powerhouses while “market investors also have high hopes for a mini-deal.”

If this optimistic viewpoint proves to be valid then the USD/JPY could rally as investors would likely shed positions in the lower-yielding Japanese Yen.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 108.49.

The projected lower bound is: 105.56.

The projected closing price is: 107.03.

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 25 white candles and 25 black 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 45.5580. This is not an overbought or oversold reading. The last signal was a buy 2 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 46.27. 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 41 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 -72. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 11 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.010 at 107.060. Volume was 99% below average (consolidating) and Bollinger Bands were 27% narrower than normal.

Open     High      Low     Close     Volume___
107.070 107.090 107.050 107.060 524
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 107.39 106.89 109.06
Volatility: 5 9 7
Volume: 82,431 94,136 91,573

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 1.8% below 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 1 periods.

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