JPYAUD closes below its opening price unable to hold early session gains
Japanese Yen/Australian Dollar (JPYAUD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
JPYAUD finished the month -1.47% lower at 0.013224 after losing 47 pips (-0.35%) today on high volume. Trading 57 pips higher after the open, JPY/AUD was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 0.013247, the pair confirmed its breakout through the prior session low after trading up to 77 pips below it intraday.
Daily Candlestick Chart (JPYAUD as at Jul 31, 2020):
Friday's trading range has been 160 pips (1.21%), that's far above the last trading month's daily average range of 114 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYAUD.
In spite of a strong opening the forex pair closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 13th, JPYAUD lost -0.47% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.013364 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for JPY/AUD. Out of 262 times, JPYAUD closed lower 57.63% of the time on the next trading day after the market condition occurred.