CHFJPY climbs to highest close since September 27, 2018
Swiss Franc/Japanese Yen (CHFJPY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CHFJPY finished the month 1.76% higher at 115.95 after surging 74 pips (0.64%) today on high volume. Today's close at 115.95 marks the highest recorded closing price since September 27, 2018. Closing above Thursday's high at 115.35, the currency confirmed its breakout through the prior session high after trading up to 96 pips above it intraday.
Daily Candlestick Chart (CHFJPY as at Jul 31, 2020):
Friday's trading range has been 141 pips (1.22%), that's far above the last trading month's daily average range of 75 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 CHFJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move lower than 114.84 in the previous session, the pair found buyers again around the same price level today at 114.90. The last time this happened on Wednesday, CHFJPY gained 0.21% on the following trading day.
Crossing above the upper Bollinger Band for the first time since July 23rd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 114.43 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for CHF/JPY. Out of 212 times, CHFJPY closed higher 57.08% 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 53.77% with an average market move of 0.14%.
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