AUDJPY breaks below Thursday's low
Australian Dollar/Japanese Yen (AUDJPY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDJPY finished the week 2.45% higher at 70.36 after losing 29 pips (-0.41%) today. Closing below Thursday's low at 70.50, the market confirmed its breakout through the prior session low after trading up to 56 pips below it intraday.
Daily Candlestick Chart (AUDJPY as at May 22, 2020):
Friday's trading range has been 86 pips (1.22%), that's slightly below the last trading month's daily average range of 88 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AUDJPY.
The forex pair closed back below the 100-day moving average at 70.43. When this moving average was crossed below the last time on January 27th, AUDJPY actually gained 0.26% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 71.08 where further buy stops might get triggered. Trading close to March's high at 71.52 we could see further upside momentum if potential buy stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for AUD/JPY. Out of 540 times, AUDJPY closed higher 53.15% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more