GBPJPY still stuck within tight trading range
British Pound/Japanese Yen (GBPJPY) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
GBPJPY ended the week 0.91% higher at 139.35 after gaining 109 pips (0.79%) today. Closing above Thursday's high at 138.53, the Geppy confirmed its breakout through the prior session high after trading up to 96 pips above it intraday.
Daily Candlestick Chart (GBPJPY as at Jan 11, 2019):
Friday's trading range has been 185 pips (1.34%), that's slightly above the last trading month's daily average range of 158 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GBPJPY. Prices continued to consolidate within a tight trading range between 137.46 and 139.49 where it has been caught now for the whole last trading week.
Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
GBP/JPY found buyers again today around 137.64 for the third trading day in a row after having found demand at 137.46 in the prior session and at 137.76 two days ago. The last time this happened on December 7, 2018, GBPJPY actually lost -0.77% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for GBP/JPY. Out of 115 times, GBPJPY closed higher 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 long side has been after 10 trading days, showing a win rate of 55.65% with an average market move of 0.31%.
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