JPYCAD pushes through key technical resistance level
Japanese Yen/Canadian Dollar (JPYCAD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
JPYCAD ended the week 0.16% higher at 0.012534 after edging higher 1 pip (0.01%) today. 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 23, 2020):
Friday's trading range has been 51 pips (0.41%), that's far below the last trading month's daily average range of 86 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.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Shooting Star showed up on September 17th, JPYCAD actually gained 0.45% on the following trading day.
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 having been unable to move lower than 0.012517 in the prior session, the pair found buyers again around the same price level today at 0.012513.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 0.012594 where further buy stops might get activated. As prices are trading close to October's low at 0.012399, downside momentum could accelerate should the FX pair mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for JPY/CAD. Out of 59 times, JPYCAD closed lower 55.93% of the time on the next trading day after the market condition occurred.