CADJPY breaks back above 20-day moving average
Canadian Dollar/Japanese Yen (CADJPY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CADJPY ended the month 1.53% higher at 79.51 after gaining 76 pips (0.97%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 78.87, the FX pair confirmed its breakout through the prior session high after trading up to 69 pips above it intraday.
Daily Candlestick Chart (CADJPY as at Jun 30, 2020):
Tuesday's trading range has been 94 pips (1.19%), that's slightly above the last trading month's daily average range of 86 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CADJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
The pair managed to close back above the 20-day moving average at 79.38 for the first time since June 16th. When this moving average was crossed above the last time on June 12th, CADJPY gained 0.05% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CAD/JPY. Out of 169 times, CADJPY closed lower 55.62% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.07% with an average market move of -0.21%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more