JPYEUR closes below its opening price unable to hold early session gains
Japanese Yen/Euro (JPYEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JPYEUR ended the month -1.23% lower at 0.008248 after losing 21 pips (-0.25%) today on low volume. Trading 22 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. The last time this happened on June 26th, JPYEUR lost -0.54% on the following trading day. 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 (JPYEUR as at Jun 30, 2020):
Tuesday's trading range has been 58 pips (0.7%), that's below the last trading month's daily average range of 79 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for JPYEUR.
After trading down to 0.008235 earlier during the day, the forex pair bounced off the key technical support level at 0.008242 (S1). The failure to close below the support could increase that levels importance as support going forward. The market closed back below the 20-day moving average at 0.008252 for the first time since June 16th. After having been unable to move lower than 0.008240 in the prior session, the FX pair found buyers again around the same price level today at 0.008235.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for JPY/EUR. Out of 516 times, JPYEUR closed higher 53.68% 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 49.42% with an average market move of 0.02%.