HKDJPY closes within prior day's range after lackluster session
Hong Kong Dollar/Japanese Yen (HKDJPY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
HKDJPY ended the week 0.51% higher at 13.88 after flat today. 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 (HKDJPY as at May 22, 2020):
Friday's trading range has been 6 pips (0.43%), that's below the last trading month's daily average range of 8 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 HKDJPY. Prices continued to consolidate within a tight trading range between 13.84 and 13.93 where it has been caught now for the last three trading days.
Even with a strong opening the pair closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on May 15th, HKDJPY actually gained 0.22% on the following trading day. Additionally, four candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern, two bearish patterns, the Last Engulfing Top Pattern and the Northern Doji and one neutral pattern, the Doji.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 13.95 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for HKD/JPY. Out of 89 times, HKDJPY closed lower 57.30% 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 53.93% with an average market move of -0.28%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more