GBPJPY runs into sellers around 142.56 for the forth day in a row
British Pound/Japanese Yen (GBPJPY) Technical Analysis Report for Feb 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GBPJPY ended Monday at 141.95 losing 10 pips (-0.07%). Trading 58 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GBPJPY as at Feb 11, 2019):
Monday's trading range has been 69 pips (0.49%), that's far below the last trading month's daily average range of 138 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for GBPJPY.
Four candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, two bearish patterns, the Bearish Hikkake Pattern and the Gravestone Doji and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on August 14, 2018, GBPJPY lost -0.54% on the following trading day.
The Geppy was sold again around 142.56 after having seen highs at 142.52, 142.63 and 142.52 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 142.63 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 141.13 where further sell stops could get triggered.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for GBP/JPY. Out of 58 times, GBPJPY closed lower 63.79% 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 50.00% with an average market move of -0.10%.
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