Japanese Yen: USD/JPY (JPY=X) under selling pressure and drops to 113.70
The pair has now faded the earlier spike to multi-day highs in the 113.90 area and it has returned to the 113.70 region, turning negative for the day.
The now bearish performance in spot follows the drop in yields of the key US 10-year note to the 3.05% neighbourhood after briefly testing highs beyond 3.06% during early trade.
All eyes are now on the publication of another revision of US Q3 GDP figures ahead of the speech by Fed’s J.Powell later in the NA session. In addition, the US-China trade dispute is expected to regain traction in light of the upcoming meeting between Trump and Xi Jinping at the G20 gathering later in the week.
USD/JPY levels to consider
As of writing the pair is losing 0.01% at 113.77 and a break below 113.34 (21-day SMA) would aim for 113.19 (10-day SMA) and then 112.31 (monthly low Nov.20). On the upside, the initial hurdle aligns at 114.20 (monthly high Nov.12) followed by 114.56 (2018 high Oct.4) and finally 114.74 (monthly high Nov.6 2017).
Overall, the bias in prices is: Sideways.
The projected upper bound is: 114.70.
The projected lower bound is: 112.45.
The projected closing price is: 113.58.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.9246. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 55.77. 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 39 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 58. This is not a topping or bottoming area. The last signal was a buy 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX JPY= closed down -0.220 at 113.550. Volume was 1% below average (neutral) and Bollinger Bands were 26% narrower than normal.
Open High Low Close Volume___
113.770 114.030 113.430 113.550 107,435
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 113.16 113.02 110.35
Volatility: 6 6 7
Volume: 117,531 114,456 107,695
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.
FOREX JPY= is currently 2.9% above its 200-period moving average and is in an upward 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 bullish on JPY= and have had this outlook for the last 4 periods.