CADJPY fails to close above 20-day moving average
Canadian Dollar/Japanese Yen (CADJPY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CADJPY ended the month -0.73% lower at 78.93 after surging 91 pips (1.17%) today on high volume. This is the biggest single-day gain in over a month. Closing above Thursday's high at 78.82, the FX pair confirmed its breakout through the prior session high after trading up to 28 pips above it intraday.
Daily Candlestick Chart (CADJPY as at Jul 31, 2020):
Friday's trading range has been 149 pips (1.91%), that's far above the last trading month's daily average range of 63 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CADJPY.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Regardless of a weak opening CAD/JPY 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 White Candle. The last time a White Candle showed up on Wednesday, CADJPY actually lost -0.84% on the following trading day.
After trading as low as 77.61 during the day, the pair found support at the 100-day moving average at 77.84. After spiking up to 79.10 during the day, the currency found resistance at the 20-day moving average at 79.01.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 79.01.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for CAD/JPY. Out of 80 times, CADJPY closed higher 58.75% 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 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