Japanese Yen: USD/JPY (JPY=X) the Opportunity to Climb Remains

Japanese Yen: USD/JPY (JPY=X) the Opportunity to Climb Remains

Japanese Yen: USD/JPY (JPY=X) the Opportunity to Climb Remains

According to the performance on the daily chart, the USD/JPY is still in an upward correction phase, and at the same time, lacks the momentum to complete it. Since the beginning of this week’s trading, the pair has not exceeded the 109.65 resistance gains, and it did not benefit much from the announcement of positive results for industrial production in the United States, which came in stronger than expected, with gains that are the highest in two years ago.

Industrial production – which includes production in factories, mines, and utilities – rose 1.1% in November, reversing a decline – 0.9% in October, and the biggest jump since October 2017. The U.S. manufacturing sector was affected by the length of the global trade dispute with China. Manufacturing production in the United States increased by 1.1%, rising 12.4% in production of cars, trucks, and auto parts. GM’s strike ended in late October. Excluding the auto industry, industrial output rose 0.5% last month.

For American employment. The number of jobs available jumped in October after reaching its lowest level in 18 months in the previous month, indicating that the US labor market is still strong. The Ministry of Labor announced that the number of available jobs increased by 3.3% to nearly 7.3 million. It is an indication that companies remain confident enough in the economic outlook to create more jobs.

The figures provide the latest evidence that employers have largely ignored the uncertainties surrounding the trade war between the United States and China and the slowdown in global economic growth. While the number of jobs decreased from a record 7.6 million a year ago, it remains at a historic height. For about a year and a half, there were more jobs than unemployed people. The numbers follow the new jobs report earlier this month, with surprisingly strong gains of 266,000 jobs, and a drop in the unemployment rate to a 50-year low at 3.5%.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 110.46.

The projected lower bound is: 108.75.

The projected closing price is: 109.60.

Candlesticks

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 26 white candles and 23 black candles for a net of 3 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 84.6562. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 1 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 61.79. 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 91 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 96. This is not a topping or bottoming area. The last signal was a sell 12 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.090 at 109.560. Volume was 28% below average (neutral) and Bollinger Bands were 29% narrower than normal.

Open     High      Low     Close     Volume___
109.490 109.620 109.380 109.560 63,934
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 109.03 108.81 108.76
Volatility: 4 5 7
Volume: 78,761 85,783 89,367

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 0.7% above its 200-period moving average and is in an upward 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 bullish on JPY= and have had this outlook for the last 2 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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