Japanese Yen: USD/JPY (JPY=X) USD has moved into a consolidation phase

Japanese Yen: USD/JPY (JPY=X) USD has moved into a consolidation phase

Japanese Yen: USD/JPY (JPY=X) USD has moved into a consolidation phase

USD tried but failed once again to move below the 112.20 support but the subsequent strong rebound from a low of 111.23 yesterday came as a surprise (USD touched 112.21 last Thursday, 06 Dec). While the ‘key resistance’ at 113.40 is still intact, the strong daily gain of +0.54% (NY close of 113.33) is enough to indicate that the recent downward pressure has eased. From here, USD is deemed to have moved into a consolidation phase and is expected to trade sideways, likely within a broad 112.40/113.90 range.

Overall, the bias in prices is: Sideways

The projected upper bound is: 114.58.

The projected lower bound is: 112.19.

The projected closing price is: 113.38.

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 26 white candles and 24 black candles for a net of 2 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 64.7466. This is not an overbought or oversold reading. The last signal was a sell 8 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 53.02. 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 48 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 17. This is not a topping or bottoming area. The last signal was a buy 14 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX JPY= closed up 0.060 at 113.390. Volume was 10% above average (neutral) and Bollinger Bands were 30% narrower than normal.

Open High Low Close Volume___
113.320 113.460 112.990 113.390 122,298

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

Moving Averages: 10-period 50-period 200-period
Close: 113.23 113.04 110.65
Volatility: 7 7 7
Volume: 122,341 118,038 107,735

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 2.5% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 2 periods.

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