AUDJPY closes below its opening price unable to hold early session gains
Australian Dollar/Japanese Yen (AUDJPY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDJPY ended the week 0.61% higher at 73.70 after losing 10 pips (-0.14%) today on low volume. Trading 19 pips higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 6th, AUDJPY lost -1.07% on the following trading day. 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 (AUDJPY as at Feb 14, 2020):
Friday's trading range has been 38 pips (0.51%), that's far below the last trading month's daily average range of 69 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDJPY. Prices continued to consolidate within a tight trading range between 73.61 and 74.31 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 73.36 (S1). Unable to break through the key technical resistance level at 73.90 (R1), the FX pair closed below it after spiking up to 73.99 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. The currency found buyers again today around 73.61 for the third trading day in a row after having found demand at 73.65 in the prior session and at 73.69 two days ago.
The forex pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 74.31 where further buy stops could get triggered. With prices trading close to this year's low at 72.41, downside momentum might speed up should the pair break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for AUD/JPY. Out of 341 times, AUDJPY closed higher 53.08% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more