JPYAUD closes higher for the 3rd day in a row
Japanese Yen/Australian Dollar (JPYAUD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPYAUD ended Wednesday at 0.013041 gaining 54 pips (0.42%). Closing above Tuesday's high at 0.013023, the FX pair confirmed its breakout through the prior session high after trading up to 57 pips above it intraday.
Daily Candlestick Chart (JPYAUD as at Sep 16, 2020):
Wednesday's trading range has been 123 pips (0.95%), that's slightly above the last trading month's daily average range of 122 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 higher than usual for JPYAUD.
Buyers managed to take out the key technical resistance level at 0.013026 (now S1), which is likely to act as support going forward. The last time this happened on September 8th, JPYAUD actually lost -1.09% on the following trading day.
Though JPY/AUD is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 0.013137 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for JPY/AUD. Out of 532 times, JPYAUD closed lower 53.01% of the time on the next trading day after the market condition occurred.