GBPJPY rockets, gaining 154 pips (1.16%) within a single day on low volume
British Pound/Japanese Yen (GBPJPY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GBPJPY ended the month 0.51% higher at 133.85 after surging 154 pips (1.16%) today on low volume. This is the biggest single-day gain in over four weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 132.69, the market confirmed its breakout through the prior session high after trading up to 120 pips above it intraday.
Daily Candlestick Chart (GBPJPY as at Jun 30, 2020):
Tuesday's trading range has been 186 pips (1.41%), that's 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 slightly lower than usual for GBPJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
The currency managed to close back above the 50-day moving average at 133.32 for the first time since June 17th. When this moving average was crossed above the last time on May 29th, GBPJPY gained 0.89% on the following trading day. GBP/JPY found buyers again today around 132.03 for the third trading day in a row after having found demand at 131.96 in the previous session and at 132.04 two days ago.
The pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 134.00 where further buy stops could get triggered.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for GBP/JPY. Out of 92 times, GBPJPY closed higher 59.78% 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 56.52% with an average market move of 0.24%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and CADJPY closing 0.97% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more