FXY finds buyers again around 87.97
CurrencyShares Japanese Yen ETF (FXY) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
FXY finished Thursday at 88.08 edging lower $0.02 (-0.02%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FXY as at Jul 02, 2020):
Thursday's trading range has been $0.14 (0.16%), that's far below the last trading month's daily average range of $0.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FXY.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 88.17 (R1). After having been unable to move lower than 88.00 in the prior session, the ETF found buyers again around the same price level today at 87.97. The last time this happened on June 26th, FXY actually lost -0.41% on the following trading day.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 88.15 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 87.70 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for FXY. Out of 407 times, FXY closed lower 51.60% 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 53.81% with an average market move of -0.06%.