JPYCAD unable to break through key resistance level
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
JPYCAD finished the week 0.76% higher at 0.012355 after gaining 61 pips (0.5%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.012326, the currency confirmed its breakout through the previous session high after trading up to 41 pips above it intraday.
Daily Candlestick Chart (JPYCAD as at Jun 14, 2019):
Friday's trading range has been 73 pips (0.59%), that's slightly below the last trading month's daily average range of 84 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 JPYCAD.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close back above the 20-day moving average at 0.012302. Unable to break through the key technical resistance level at 0.012356 (R1), the market closed below it after spiking up to 0.012367 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 7th, JPYCAD lost -0.23% on the following trading day.
Although the pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 0.012418 where further buy stops could get activated.
Among the nine 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 JPY/CAD. Out of 272 times, JPYCAD closed lower 53.68% 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 10 trading days, showing a win rate of 56.62% with an average market move of -0.23%.