JPYCAD breaks back above 50-day moving average


Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Oct 14, 2020 | by Techniquant Editorial Team

Highlights

JPYCAD breaks back above 50-day moving average
JPYCAD closes higher for the 3rd day in a row
JPYCAD pushes through Tuesday's high
JPYCAD still stuck within tight trading range

Overview

Moving higher for the 3rd day in a row, JPYCAD ended Wednesday at 0.012500 gaining 44 pips (0.35%) on low volume. Closing above Tuesday's high at 0.012480, the FX pair confirmed its breakout through the previous session high after trading up to 42 pips above it intraday.

Daily Candlestick Chart (JPYCAD as at Oct 14, 2020):

Daily technical analysis candlestick chart for Japanese Yen/Canadian Dollar (JPYCAD) as at Oct 14, 2020

Wednesday's trading range has been 81 pips (0.65%), that's slightly below the last trading month's daily average range of 88 pips. Weekly volatility is also lower, being below 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 0.012527 where it has been caught now for the whole last trading week.

One bullish candlestick pattern matches today's price action, the White Candle.

JPY/CAD managed to close back above the 50-day moving average at 0.012496 for the first time since October 6th. When this moving average was crossed above the last time on September 16th, JPYCAD gained 0.10% on the following trading day. Prices are trading close to the key technical resistance level at 0.012533 (R1).

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for JPY/CAD. Out of 105 times, JPYCAD closed lower 50.48% 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 57.14% with an average market move of -0.11%.


Market Conditions for JPYCAD as at Oct 14, 2020

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