Japanese Candlesticks Analysis 09.12.2016 (EUR/USD, USD/JPY)

EUR USD, “Euro vs. US Dollar”

At the H4 chart of EUR USD, Engulfing Bearish, Tower and Shooting Star patterns indicate a descending movement. Three Line Break chart shows a bearish direction; Heiken Ashi candlesticks confirm an ascending movement.

At the H1 chart of EUR USD, bullish Harami pattern indicates an ascending movement. Three Line Break chart and Heiken Ashi candlesticks confirm a bullish direction; the closest Window is a resistance level.

USD JPY, “US Dollar vs. Japanese Yen”

The H4 chart of USD JPY shows the uptrend. The price is probably finishing the sideways correction. Bullish Hammer and Three Methods continuation patterns indicate an ascending movement. Three Line Break chart and Heiken Ashi candlesticks confirm a bullish direction.

The Yen is slowly recovering. Overview for 08.12.2016

The USD/JPY pair is trading to the downside for the second day in a row, but not very actively, as the market is waiting for the outside signals.

While the demand for the American currency is rather calm, the Japanese Yen is slowly growing. The current quote for the instrument is 113.64. However, there are no any internal support factors.

According to the statistics published this morning, the country’s final GDP in the third quarter added 0.3% q/q, which is twice less than expectations of 0.6% q/q. On YoY, the indicator expanded by 1.3% after adding 2.2% in the second quarter. The market expected the number to be close to 2.3%.

Judging by the released data, one can think that the external uncertainty and the export decline have a significant effect on the Japanese GDP. Another negative factor is a slow salary growth over the country, which prevents retail sales from expanding.

On top of that, such indicator as the Foreign Bond Investment is improving very slowly. Partially, it is compensated by the growth of the Private Consumption in the third quarter (added 0.3% against expectations of 0.1%), but in the fourth quarter this indicator is very unlikely to provide any support because there is a limit to the consumer confidence.

The Yen responded to the statistics with an insignificant decline, but managed to process this news quite fast and was back to strengthening.