JPYCAD pushes through key technical resistance level
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Oct 15, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, JPYCAD finished Thursday at 0.012536 gaining 36 pips (0.29%) on high volume. Closing above Wednesday's high at 0.012522, the market confirmed its breakout through the previous session high after trading up to 65 pips above it intraday.
Daily Candlestick Chart (JPYCAD as at Oct 15, 2020):
Thursday's trading range has been 103 pips (0.82%), that's above 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 below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYCAD.
Buyers managed to take out the key technical resistance level at 0.012533 (now S1), which is likely to act as support going forward. After spiking up to 0.012587 during the day, the pair found resistance at the 100-day moving average at 0.012559. The last time this happened on September 18th, JPYCAD actually gained 0.71% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 0.012628 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for JPY/CAD. Out of 76 times, JPYCAD closed higher 52.63% 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 51.32% with an average market move of 0.13%.