HKDJPY breaks above 200-day moving average for the first time since June 8th
Hong Kong Dollar/Japanese Yen (HKDJPY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HKDJPY finished the month 0.14% higher at 13.93 after gaining 5 pips (0.36%) today. Today's close at 13.93 marks the highest recorded closing price since June 8th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 13.92, the FX pair confirmed its breakout through the prior session high after trading up to 1 pip above it intraday.
Daily Candlestick Chart (HKDJPY as at Jun 30, 2020):
Tuesday's trading range has been 6 pips (0.43%), that's below the last trading month's daily average range of 9 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HKDJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
The pair managed to close above the 200-day moving average at 13.92 for the first time since June 8th. After having been unable to move above 13.92 in the previous session, the currency ran into sellers again around the same price level today, failing to move higher than 13.93. The last time this happened on June 26th, HKDJPY actually gained 0.36% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for HKD/JPY. Out of 343 times, HKDJPY closed lower 55.39% of the time on the next trading day after the market condition occurred.
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 GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more