JPYCHF closes higher for the 2nd day in a row
Japanese Yen/Swiss Franc (JPYCHF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYCHF ended the week 0.47% higher at 0.008949 after gaining 30 pips (0.34%) today on low volume. Today's close at 0.008949 marks the highest recorded closing price since January 3rd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.008925, the pair confirmed its breakout through the previous session high after trading up to 26 pips above it intraday.
Daily Candlestick Chart (JPYCHF as at Feb 14, 2020):
Friday's trading range has been 40 pips (0.45%), that's slightly above the last trading month's daily average range of 39 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for JPYCHF.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close above the 50-day moving average at 0.008917 for the first time since November 22, 2019. When this moving average was crossed above the last time on November 22, 2019, JPYCHF actually lost -0.40% on the following trading day.
Although the currency is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's high at 0.009016, upside momentum might accelerate should JPY/CHF be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for JPY/CHF. Out of 85 times, JPYCHF closed lower 58.82% 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 54.12% with an average market move of -0.24%.