Japanese Yen: USD/JPY (JPY=X) Treasury yields rose and demand for risk increased amid optimism over U.S.-China relations

Japanese Yen: USD/JPY (JPY=X) Treasury yields rose and demand for risk increased amid optimism over U.S.-China relations

Japanese Yen: USD/JPY (JPY=X) Treasury yields rose and demand for risk increased amid optimism over U.S.-China relations

The Dollar/Yen rallied on Friday as Treasury yields rose and demand for risk increased amid optimism over U.S.-China relations. Although a trade deal between the two economic powerhouses wasn’t reached, the price action suggests investors felt there was still hope for a trade agreement.

Supporting this thought were positive comments from U.S. and Chinese officials. Treasury Secretary Steven Mnuchin said China trade talks were “constructive.” Chinese Vice Premier Liu He also said the talks went “fairly well,” according to reports.

According to Bloomberg News, the U.S. told China it had three to four weeks to come to an agreement or the White House would enact more tariffs.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 110.82.

The projected lower bound is: 108.98.

The projected closing price is: 109.90.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 17.7408. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 15 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 31.14. 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 -127.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 up 0.190 at 109.940. Volume was 14% above average (neutral) and Bollinger Bands were 19% wider than normal.

Open High Low Close Volume___
109.750 110.040 109.460 109.940 105,081

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 110.78 111.27 111.47
Volatility: 4 5 7
Volume: 78,970 88,565 101,261

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 1.4% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of JPY= (mildly bearish). Our trend forecasting oscillators are currently bearish on JPY= and have had this outlook for the last 4 periods.

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