JPYCAD finds buyers again around 0.012399
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Oct 12, 2020 | by Techniquant Editorial Team
JPYCAD finished Monday at 0.012449 gaining 30 pips (0.24%) on low volume. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JPYCAD as at Oct 12, 2020):
Monday's trading range has been 62 pips (0.5%), that's far below the last trading month's daily average range of 89 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYCAD.
Despite a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Unable to break through the key technical resistance level at 0.012453 (R1), the forex pair closed below it after spiking up to 0.012461 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 0.012405 in the prior session, JPY/CAD found buyers again around the same price level today at 0.012399. The last time this happened on October 6th, JPYCAD actually lost -0.75% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 0.012593.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for JPY/CAD. Out of 545 times, JPYCAD closed lower 55.05% 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 51.74% with an average market move of -0.11%.