ETHJPY unable to break through key resistance level
Ethereum/Japanese Yen Index (ETHJPY) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ETHJPY ended Saturday at 22212.90 edging lower ¥87.27 (-0.39%) on low volume. Trading ¥430.32 higher after the open, Ether was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ETHJPY as at May 23, 2020):
Saturday's trading range has been ¥638.73 (2.86%), that's far below the last trading month's daily average range of ¥1278.98. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ETHJPY.
After moving higher in the previous session, ETH closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, three candlestick patterns are matching today's price action, the Bearish Hikkake Pattern, the Bearish Spinning Top and the Shooting Star which are known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on May 17th, ETHJPY actually gained 3.79% on the following trading day.
Unable to break through the key technical resistance level at 22598.91 (R1), ETH/JPY closed below it after spiking up to 22730.49 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 23221.38 where further buy stops could get triggered. As prices are trading close to May's high at 23447.12, upside momentum might speed up should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ETH/JPY. Out of 29 times, ETHJPY closed higher 62.07% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 65.52% with an average market move of 15.17%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more