JPYCAD runs into sellers again around 0.012583
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
JPYCAD finished the week 0.76% higher at 0.012514 after losing 22 pips (-0.18%) today. Trading 42 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JPYCAD as at Oct 16, 2020):
Friday's trading range has been 83 pips (0.66%), that's slightly below the last trading month's daily average range of 87 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYCAD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 0.012453 (S1). Prices broke below the key technical support level at 0.012533 (now R1), which is likely to act as resistance going forward. The last time this happened on October 8th, JPYCAD lost -0.22% on the following trading day. After having been unable to move above 0.012587 in the prior session, JPY/CAD ran into sellers again around the same price level today, missing to move higher than 0.012583.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 0.012587 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for JPY/CAD. Out of 648 times, JPYCAD closed higher 52.16% 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 50.62% with an average market move of 0.14%.