Japanese Yen: USD/JPY (JPY=X) US Dollar Slamming Into Resistance

Japanese Yen: USD/JPY (JPY=X) US Dollar Slamming Into Resistance

Japanese Yen: USD/JPY (JPY=X) US Dollar Slamming Into Resistance

The US dollar has rallied quite a bit during the trading session on Monday, reaching towards the ¥110 level. That’s an area that is significant resistance that the market has acknowledged for some time. If we were to break above there for a significant amount of time, perhaps a few hours, the market is likely to continue the next leg higher and reach towards the ¥111 level, where there is a bit of a gap. If we can break above there, then the market is likely to go to the ¥112.50 level.

Pullbacks at this point will continue to collect a bit of interest, and perhaps the idea of people building up positions. The market has broken above the top of a shooting star from the previous session, and that suggests to me that we are going to continue to see buyers jump in and try to break this pair out. Remember that it is highly sensitive to risk appetite, and the markets rally in and showing signs of strength again could drive this pair much higher. That being said, it doesn’t mean that we will do it immediately and we may need to pullback several different times in order to finally break higher for a sustainable move. If we do pull back from here, the market will probably go looking towards the ¥109 level for support, and furthermore at the ¥108 level. I have no interest in shorting, but I recognize that you may need to show a bit of patience in order to start buying.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 110.83.

The projected lower bound is: 109.11.

The projected closing price is: 109.97.

Candlesticks

A white body occurred (because prices closed higher 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 25 white candles and 24 black candles for a net of 1 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 95.4041. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 63.65. 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 109 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 114.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 4 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 1 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.480 at 109.940. Volume was 22% below average (neutral) and Bollinger Bands were 3% wider than normal.

Open     High      Low     Close     Volume___
109.480 109.940 109.440 109.940 65,803
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 108.88 109.01 108.58
Volatility: 6 5 7
Volume: 73,430 78,962 86,931

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 1.2% above its 200-period moving average and is in an upward trend. Volatility is 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 0 periods.

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