JPYAUD finds buyers at key support level
Japanese Yen/Australian Dollar (JPYAUD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYAUD finished the week -0.61% lower at 0.013569 after gaining 19 pips (0.14%) today on low volume. Trading up to 35 pips lower after the open, JPY/AUD managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 6th, JPYAUD gained 1.08% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JPYAUD as at Feb 14, 2020):
Friday's trading range has been 70 pips (0.52%), that's far below the last trading month's daily average range of 126 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPYAUD. Prices continued to consolidate within a tight trading range between 0.013457 and 0.013585 where it has been caught now for the last three trading days.
After trading down to 0.013515 earlier during the day, the forex pair bounced off the key technical support level at 0.013532 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 0.013631 (R1). The pair ran into sellers again today around 0.013585 for the third trading day in a row after having found sellers at 0.013578 in the prior session and at 0.013570 two days ago.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 0.013457 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for JPY/AUD. Out of 477 times, JPYAUD closed higher 54.51% 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 52.20% with an average market move of 0.23%.