AUDJPY pushes through key technical resistance level
Australian Dollar/Japanese Yen (AUDJPY) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AUDJPY ended the week 1.39% higher at 78.28 after gaining 37 pips (0.47%) today. Closing above Thursday's high at 78.00, AUD/JPY confirmed its breakout through the previous session high after trading up to 37 pips above it intraday.
Daily Candlestick Chart (AUDJPY as at Jan 11, 2019):
Friday's trading range has been 55 pips (0.71%), that's below the last trading month's daily average range of 116 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AUDJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 78.11 (now S1), which is likely to act as support going forward. The last time this happened on December 10, 2018, AUDJPY gained 0.23% on the following trading day.
Although the FX pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for AUD/JPY. Out of 1,363 times, AUDJPY closed higher 54.29% 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 53.26% with an average market move of 0.24%.
With five out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.71% and NZDUSD closing 0.69% higher. On the flipside the worst performers have been EURUSD closing -0.27% lower and USDCHF losing -0.09%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been NZDCAD surging 0.98% and GBPCAD closing 0.97% higher. The worst performers of the day have been EURNZD tanking -1.04% and EURGBP closing -0.99% lower. Read more