GBPJPY dominated by bears dragging the market lower throughout the day
British Pound/Japanese Yen (GBPJPY) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
GBPJPY ended Tuesday at 146.17 losing 59 pips (-0.4%) on low volume. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 146.34, GBP/JPY confirmed its breakout through the previous session low after trading up to 33 pips below it intraday.
Daily Candlestick Chart (GBPJPY as at Apr 16, 2019):
Tuesday's trading range has been 79 pips (0.54%), that's far below the last trading month's daily average range of 133 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GBPJPY.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bullish Hikkake Pattern showed up on March 7th, GBPJPY actually lost -0.88% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 147.02 where further buy stops could get triggered. As prices are trading close to April's high at 147.20, upside momentum might speed up should the currency mark new highs for the month. As prices are trading close to April's low at 144.39, downside momentum could accelerate should the FX pair mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for GBP/JPY. Out of 117 times, GBPJPY closed higher 55.56% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.4% and EURUSD closing -0.2% lower. On the flipside the best performers have been USDCHF closing 0.38% higher and AUDUSD gaining 0.03%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been TRYJPY surging 0.57% and CADCHF closing 0.52% higher. The worst performers of the day have been EURTRY tanking -0.82% and USDTRY closing -0.63% lower. Read more