Japanese Yen: USD/JPY (JPY=X) US Dollar Continues to Power Higher

Japanese Yen: USD/JPY (JPY=X) US Dollar Continues to Power Higher

Japanese Yen: USD/JPY (JPY=X) US Dollar Continues to Power Higher

The US dollar rallied a bit during the trading session again on Wednesday, as the ¥112 level looms large just above. If the market can finally break through there, it will obviously go much higher, due to the fact that every time this market has dropped, it appears that more people are willing to step in and try to pick this up. The US dollar is in huge demand right now, as we have seen against several other currencies. Because of this, I believe that the market is very likely to continue to see people buying on the dips until something drastically changes. If we can break above the ¥112 level, then it’s likely that we could have a significant move after that.

On that move, I would anticipate that the market goes looking towards the ¥114 level, possibly even the ¥115 level. The fact that the buyers simply won’t let it go tells me just how tenuous the situation is and how much demand there is for the greenback in general. I like the idea of owning the greenback in this time of confusion and concern, even though the Japanese yen is considered to be one of the premier “safety currencies” out there. There is huge demand for the greenback due to massive amounts of debt around the world, and that is going to be a story that you will be hearing most of the year. At this point, if we break down below the ¥109 level, that could lead to massive selling, but obviously there’s a lot of people willing to fight that move.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 114.02.

The projected lower bound is: 107.45.

The projected closing price is: 110.73.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 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 82.1540. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 12 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 57.84. 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 12 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 81. This is not a topping or bottoming area. The last signal was a sell 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 buy 7 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed down -0.470 at 110.720. Volume was 48% below average (neutral) and Bollinger Bands were 197% wider than normal.

Open     High      Low     Close     Volume___
111.190 111.300 110.440 110.720 50,332
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 109.53 109.01 108.32
Volatility: 26 20 11
Volume: 153,809 114,730 93,494

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 2.2% above its 200-period moving average and is in an upward trend. Volatility is high 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.

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