EURJPY closes below its opening price unable to hold early session gains
Euro/Japanese Yen (EURJPY) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EURJPY ended the week 0.62% higher at 124.45 after losing 26 pips (-0.21%) today. Trading 29 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on December 24, 2018, EURJPY actually gained 0.37% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURJPY as at Jan 11, 2019):
Friday's trading range has been 76 pips (0.61%), that's slightly below the last trading month's daily average range of 126 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for EURJPY. Prices continued to consolidate within a tight trading range between 123.41 and 125.10 where it has been caught now for the whole last trading week.
The currency found buyers again today around 124.24 for the third trading day in a row after having found demand at 124.36 in the previous session and at 124.39 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 125.10 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for EUR/JPY. Out of 131 times, EURJPY closed lower 55.73% 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 54.20% with an average market move of -0.32%.
With five out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.71% and NZDUSD closing 0.69% higher. On the flipside the worst performers have been EURUSD closing -0.27% lower and USDCHF losing -0.09%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been NZDCAD surging 0.98% and GBPCAD closing 0.97% higher. The worst performers of the day have been EURNZD tanking -1.04% and EURGBP closing -0.99% lower. Read more