EURJPY rises to highest close since May 1, 2019
Euro/Japanese Yen (EURJPY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EURJPY ended the month 2.86% higher at 124.71 after gaining 64 pips (0.52%) today on high volume. Today's close at 124.71 marks the highest recorded closing price since May 1, 2019. Closing above Thursday's high at 124.20, the currency confirmed its breakout through the prior session high after trading up to 101 pips above it intraday.
Daily Candlestick Chart (EURJPY as at Jul 31, 2020):
Friday's trading range has been 137 pips (1.1%), that's far above the last trading month's daily average range of 87 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EURJPY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, EURJPY gained 0.30% on the following trading day.
After trading down to 123.84 earlier during the day, the FX pair bounced off the key technical support level at 123.99 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EUR/JPY. Out of 35 times, EURJPY closed higher 57.14% 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 57.14% with an average market move of 0.69%.
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