FXY closes lower for the 2nd day in a row
CurrencyShares Japanese Yen ETF (FXY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FXY ended the week -0.36% lower at 88.03 after edging lower $0.05 (-0.06%) today ahead of tomorrow's Memorial Day market holiday. 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 (FXY as at May 22, 2020):
Friday's trading range has been $0.15 (0.17%), that's below the last trading month's daily average range of $0.28. 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 FXY.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on Wednesday, FXY lost -0.02% on the following trading day.
Prices are trading close to the key technical resistance level at 88.17 (R1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 88.26 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 87.87 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for FXY. Out of 125 times, FXY closed lower 52.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.60% with an average market move of -0.15%.