EURJPY runs into sellers again around 121.43
Euro/Japanese Yen (EURJPY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EURJPY ended the month 1.25% higher at 121.24 after gaining 30 pips (0.25%) today on low volume. Trading up to 31 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 26th, EURJPY gained 0.55% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EURJPY as at Jun 30, 2020):
Tuesday's trading range has been 84 pips (0.69%), that's below the last trading month's daily average range of 116 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for EURJPY.
The currency managed to close back above the 20-day moving average at 121.20 for the first time since June 16th. Unable to break through the key technical resistance level at 121.33 (R1), the FX pair closed below it after spiking up to 121.43 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 121.36 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 121.43.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five 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. Its common bullish interpretation has been confirmed for EUR/JPY. Out of 151 times, EURJPY closed higher 54.97% 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 two trading days, showing a win rate of 54.30% with an average market move of 0.03%.
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