GBPJPY closes higher for the 3rd day in a row
British Pound/Japanese Yen (GBPJPY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPJPY ended Thursday at 133.75 gaining 168 pips (1.27%). Trading up to 150 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 133.40, the market confirmed its breakout through the prior session high after trading up to 44 pips above it intraday.
Daily Candlestick Chart (GBPJPY as at Mar 26, 2020):
Thursday's trading range has been 327 pips (2.48%), that's slightly above the last trading month's daily average range of 326 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GBPJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close above the 20-day moving average at 133.12 for the first time since February 25th. After having been unable to move above 133.40 in the previous session, the Geppy ran into sellers again around the same price level today, failing to move higher than 133.84. The last time this happened on March 13th, GBPJPY lost -1.90% on the following trading day.
While GBP/JPY is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for GBP/JPY. Out of 579 times, GBPJPY closed higher 54.58% 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 53.54% with an average market move of 0.13%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more