GBPJPY runs into sellers again around 143.41
British Pound/Japanese Yen (GBPJPY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GBPJPY finished the week 1.27% higher at 143.22 after edging lower 1 pip (-0.01%) today on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GBPJPY as at Feb 14, 2020):
Friday's trading range has been 64 pips (0.45%), that's far below the last trading month's daily average range of 109 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 143.44 (R1). After having been unable to move above 143.48 in the prior session, the pair ran into sellers again around the same price level today, missing to move higher than 143.41. The last time this happened on February 3rd, GBPJPY actually gained 1.04% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 143.48 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 142.15 where further sell stops could get activated. With prices trading close to this year's high at 144.61, upside momentum might speed up should the Geppy be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GBP/JPY. Out of 59 times, GBPJPY closed higher 59.32% 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 eight trading days, showing a win rate of 52.54% with an average market move of -0.07%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more