JPYCAD closes above its opening price after recovering from early selling pressure
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Oct 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYCAD ended Tuesday at 0.012456 edging higher 7 pips (0.06%). Trading up to 29 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JPYCAD as at Oct 13, 2020):
Tuesday's trading range has been 62 pips (0.5%), that's far below the last trading month's daily average range of 88 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. Prices continued to consolidate within a tight trading range between 0.012399 and 0.012480 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Buyers managed to take out the key technical resistance level at 0.012453 (now S1), which is likely to act as support going forward. The last time this happened on October 2nd, JPYCAD actually lost -0.75% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 0.012399 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for JPY/CAD. Out of 385 times, JPYCAD closed lower 54.03% of the time on the next trading day after the market condition occurred.