EURJPY finds buyers again around 124.26
Euro/Japanese Yen (EURJPY) Technical Analysis Report for Feb 11, 2019 | by Techniquant Editorial Team
EURJPY ended Monday at 124.57 gaining 29 pips (0.23%) on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EURJPY as at Feb 11, 2019):
Monday's trading range has been 62 pips (0.5%), that's below the last trading month's daily average range of 79 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for EURJPY.
After moving lower in the previous session, the forex pair managed to close higher but below the prior day's open, forming a bullish Harami Candle.
After spiking up to 124.88 during the day, EUR/JPY found resistance at the 20-day moving average at 124.73. After having been unable to move lower than 124.18 in the previous session, the currency found buyers again around the same price level today at 124.26. The last time this happened on February 5th, EURJPY actually lost -0.37% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 124.18 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for EUR/JPY. Out of 45 times, EURJPY closed lower 60.00% 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 nine trading days, showing a win rate of 46.67% with an average market move of 0.08%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.63% and EURUSD closing -0.41% lower. On the flipside the best performers have been USDJPY closing 0.57% higher and USDCHF gaining 0.37%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.38% and USDMXN closing 1.17% higher. The worst performers of the day have been ZARJPY tanking -0.74% and GBPHKD closing -0.63% lower. Read more