ETHJPY breaks back below 50-day moving average
Ethereum/Japanese Yen Index (ETHJPY) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETHJPY ended the week 0.32% higher at 24223.56 after losing ¥194.82 (-0.8%) today. Trading ¥151.82 higher after the open, the cryptocurrency 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ETHJPY as at Jul 03, 2020):
Friday's trading range has been ¥425.21 (1.74%), that's far below the last trading month's daily average range of ¥924.23. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ETHJPY. Prices continued to consolidate within a tight trading range between 23747.35 and 25025.40 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The market closed back below the 50-day moving average at 24424.96 for the first time since June 27th. When this moving average was crossed below the last time on June 27th, ETHJPY actually gained 1.63% on the following trading day. Ether was bought again around 24144.99 after having seen lows at 24068.72, 24196.20 and 24052.21 in the last three trading sessions. Obviously there is something going on at that level.
Although ETH is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 25025.40 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 24068.72 where further sell stops could get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior three Lows" stand out. Its common bullish interpretation has been confirmed for ETH/JPY. Out of 39 times, ETHJPY closed higher 53.85% 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 74.36% with an average market move of 19.90%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are EOSUSD gaining 2.54% and XRPUSD closing 0.86% higher. On the flipside the worst performers have been ETHUSD closing -0.59% lower and BTCUSD losing -0.29%. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 7.62% and ICXBTC closing 6.57% higher. The worst performers of the day have been BTGUSD tanking -8.19% and BTGBTC closing -5.0% lower. Read more