JPYCAD dominated by bears dragging the market lower throughout the day
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Oct 20, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JPYCAD ended Tuesday at 0.012444 tanking 65 pips (-0.52%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 0.012469, the forex pair confirmed its breakout through the prior session low after trading up to 50 pips below it intraday.
Daily Candlestick Chart (JPYCAD as at Oct 20, 2020):
Tuesday's trading range has been 101 pips (0.81%), that's above the last trading month's daily average range of 83 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
The FX pair closed back below the 50-day moving average at 0.012489 for the first time since October 13th. When this moving average was crossed below the last time on October 7th, JPYCAD lost -0.50% on the following trading day. After having been unable to move above 0.012525 in the previous session, the currency ran into sellers again around the same price level today, missing to move higher than 0.012520.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the close-by swing low at 0.012399 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Its common bearish interpretation has been confirmed for JPY/CAD. Out of 106 times, JPYCAD closed lower 57.55% 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 58.49% with an average market move of -0.23%.