JPYCAD closes higher for the 2nd day in a row
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYCAD ended the week 0.86% higher at 0.012711 after gaining 38 pips (0.3%) today. Closing above Thursday's high at 0.012682, JPY/CAD confirmed its breakout through the prior session high after trading up to 75 pips above it intraday.
Daily Candlestick Chart (JPYCAD as at Jul 10, 2020):
Friday's trading range has been 97 pips (0.77%), that's slightly below the last trading month's daily average range of 100 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for JPYCAD.
Prices are trading close to the key technical resistance level at 0.012760 (R1).
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further buying might move prices higher should the market test June's nearby high at 0.012816.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for JPY/CAD. Out of 272 times, JPYCAD closed higher 51.10% 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 52.94% with an average market move of 0.20%.