JPYEUR dominated by bulls lifting the market higher throughout the day
Japanese Yen/Euro (JPYEUR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPYEUR finished Wednesday at 0.008068 surging 63 pips (0.79%). This is the biggest single-day gain in over three months. The last time we've seen such an unusually strong single-day gain on May 4th, JPYEUR gained 0.79% on the following trading day. Today's close at 0.008068 marks the highest recorded closing price since July 29th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 0.008015, the pair confirmed its breakout through the prior session high after trading up to 60 pips above it intraday.
Daily Candlestick Chart (JPYEUR as at Sep 16, 2020):
Wednesday's trading range has been 76 pips (0.95%), that's above the last trading month's daily average range of 60 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPYEUR.
One bullish candlestick pattern matches today's price action, the White Candle.
The FX pair managed to close above the 50-day moving average at 0.008029 for the first time since May 25th.
Crossing above the upper Bollinger Band for the first time since May 6th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.007970 or signal the beginning of a strong momentum breakout leading to even higher prices.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for JPY/EUR. Out of 158 times, JPYEUR closed lower 52.53% 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 55.06% with an average market move of -0.14%.