Japanese Yen: USD/JPY (JPY=X) trapped between two major moving averages

Japanese Yen: USD/JPY (JPY=X) trapped between two major moving averages

Japanese Yen: USD/JPY (JPY=X) trapped between two major moving averages

The US dollar gapped higher to kick the week off on Monday, showing signs of strength against the Japanese yen yet again. Ultimately, this is a market that is trapped between two major moving averages.

The US dollar has gapped higher against the Japanese yen during the trading session on Monday, breaking towards the ¥108.50 level during early US trading. This is a currency pair that is highly sensitive to risk appetite, and of course the stock markets in general. Ultimately, this is a market that will go looking towards the 200 day EMA as we are sitting just above the 50 day EMA. Ultimately, the market continues to show signs of construction, and that of course shows that momentum will be building up for a larger move.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 108.07.

The projected upper bound is: 109.65.

The projected lower bound is: 107.71.

The projected closing price is: 108.68.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 27.9233. 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 55.85. 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 59 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 -46. This is not a topping or bottoming area. The last signal was a buy 0 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 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.460 at 108.630. Volume was 22% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open     High      Low     Close     Volume___
108.170 108.640 108.160 108.630 70,735
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 108.59 107.73 109.02
Volatility: 6 6 7
Volume: 81,775 90,746 90,823

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 0.4% below its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into JPY= (mildly bullish). Our trend forecasting oscillators are currently bullish on JPY= and have had this outlook for the last 16 periods.

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