Japanese Yen: USD/JPY (JPY=X) unchanged ahead of Japanese inflation reports

Japanese Yen: USD/JPY (JPY=X) unchanged ahead of Japanese inflation reports

Japanese Yen: USD/JPY (JPY=X) unchanged ahead of Japanese inflation reports

The Japanese yen is unchanged in the Wednesday session. In the North American session, USD/JPY is trading at 110.42, up 0.11% on the day. In economic news, Japanese All Industries Activity declined by 0.8%, missing the estimate of -0.7%.

The U.S releases Existing Home Sales, which are expected to edge higher to 5.40 million. Today’s key event is the Federal Reserve minutes from the August 1 policy meeting. Later, Japan releases National Core CPI and the Services Producer Price Index. On Thursday, the U.S releases unemployment claims.

Thus far for the session, the USD/JPY has tightened up between the 38% Fibonacci retracement of the current wave (110.40) and the Psyche Level of 110.00. Tuesday’s high of 110.54 will be a key aspect in today’s market. If we see buyers pile in above this level, a bullish trend day may develop.

For now, it is wait-and-see time for the USD/JPY. With the FOMC on deck, it may be best to hang out on the sidelines and gameplan for the coming 48 hours.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 111.60.

The projected lower bound is: 109.47.

The projected closing price is: 110.53.

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 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 30.5428. This is not an overbought or oversold reading. The last signal was a buy 19 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 44.41. 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 24 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 -97. 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 22 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.240 at 110.530. Volume was 3% above average (neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
110.280 110.610 110.010 110.530 104,042

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 110.68 111.01 109.84
Volatility: 5 6 8
Volume: 109,927 104,390 106,273

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 0.6% above its 200-period moving average and is in an downward trend. Volatility is low 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 18 periods.

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