AUDJPY breaks below Tuesday's low


Australian Dollar/Japanese Yen (AUDJPY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team

Highlights

AUDJPY breaks below key technical support level
AUDJPY closes lower for the 3rd day in a row
AUDJPY breaks below Tuesday's low

Overview

Moving lower for the 3rd day in a row, AUDJPY finished Wednesday at 76.68 losing 32 pips (-0.42%). Closing below Tuesday's low at 76.79, the market confirmed its breakout through the prior session low after trading up to 34 pips below it intraday.

Daily Candlestick Chart (AUDJPY as at Sep 16, 2020):

Daily technical analysis candlestick chart for Australian Dollar/Japanese Yen (AUDJPY) as at Sep 16, 2020

Wednesday's trading range has been 73 pips (0.95%), that's slightly above the last trading month's daily average range of 72 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 higher than usual for AUDJPY.

Prices broke below the key technical support level at 76.72 (now R1), which is likely to act as resistance going forward. The last time this happened on September 8th, AUDJPY actually gained 1.10% on the following trading day.

While AUD/JPY is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

Selling might accelerate should prices move below the close-by swing low at 76.12 where further sell stops could get triggered.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for AUD/JPY. Out of 276 times, AUDJPY closed higher 52.17% 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 58.33% with an average market move of 0.16%.

With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more


Market Conditions for AUDJPY as at Sep 16, 2020

Loading Market Conditions for AUDJPY (Australian Dollar/Japanese Yen)...
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AUDJPY closes within prior day's range

Sep 17, 2020
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