AUDJPY closes above its opening price after recovering from early selling pressure
Australian Dollar/Japanese Yen (AUDJPY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AUDJPY ended the month 1.49% higher at 75.62 after gaining 27 pips (0.36%) today on high volume. Trading up to 32 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 75.49, the currency confirmed its breakout through the prior session high after trading up to 44 pips above it intraday.
Daily Candlestick Chart (AUDJPY as at Jul 31, 2020):
Friday's trading range has been 91 pips (1.21%), that's far above the last trading month's daily average range of 65 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AUDJPY.
In spite of a weak opening the forex pair managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on July 13th, AUDJPY gained 0.47% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 74.83 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for AUD/JPY. Out of 656 times, AUDJPY closed higher 51.07% 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 52.13% with an average market move of 0.07%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more