JPYCAD closes within prior day's range after lackluster session
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Oct 19, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JPYCAD ended Monday at 0.012509 edging lower 5 pips (-0.04%). 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 19, 2020):
Monday's trading range has been 56 pips (0.45%), that's far below the last trading month's daily average range of 83 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.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Hanging Man. The last time a Bullish Hikkake Pattern showed up on September 7th, JPYCAD gained 1.30% on the following trading day.
After trading as low as 0.012469 during the day, the forex pair found support at the 50-day moving average at 0.012490. 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.
Buying might speed up should prices move above the close-by swing high at 0.012587 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for JPY/CAD. Out of 30 times, JPYCAD closed higher 73.33% 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 53.33% with an average market move of 0.56%.