JPYAUD breaks back below 20-day moving average
Japanese Yen/Australian Dollar (JPYAUD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JPYAUD finished the month -3.53% lower at 0.013421 after losing 116 pips (-0.86%) today on low volume. Closing below Monday's low at 0.013515, the pair confirmed its breakout through the prior session low after trading up to 110 pips below it intraday.
Daily Candlestick Chart (JPYAUD as at Jun 30, 2020):
Tuesday's trading range has been 180 pips (1.33%), that's slightly below the last trading month's daily average range of 215 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for JPYAUD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.013317 (S1). The FX pair closed back below the 20-day moving average at 0.013462 for the first time since June 22nd. When this moving average was crossed below the last time on June 22nd, JPYAUD actually gained 0.04% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 0.013023, downside momentum could speed up should the currency break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for JPY/AUD. Out of 144 times, JPYAUD closed lower 52.08% 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 five trading days, showing a win rate of 57.64% with an average market move of -0.10%.